Oracle and OpenAI canceled plans to expand their flagship artificial intelligence data center in Abilene, Texas after negotiations stalled over financing terms and OpenAI’s changing compute requirements. The decision affects a planned 600 megawatt expansion that would have grown the campus from its current target of 1.2 gigawatts to 2 gigawatts.
The development creates an opening for Meta Platforms, which is now in discussions to lease the shelved capacity from developer Crusoe. Nvidia facilitated these discussions and deposited $150 million with Crusoe to secure the site for its chips rather than competitor AMD’s products.
The Abilene site remains central to the Stargate initiative, announced in January 2025 as a $500 billion project involving OpenAI, Oracle, and SoftBank Group. Two of eight planned buildings at the 1,000-acre campus are already operational, with Oracle continuing construction on the remaining structures. The core agreement between Oracle and OpenAI to develop 4.5 gigawatts of capacity remains intact.
Who’s Doing What
Four major players navigate the shifting landscape of AI data center infrastructure
Oracle
Operates the Abilene campus through Oracle Cloud Infrastructure with eight buildings under development. Two buildings launched in September 2025. The company maintains its commitment to the 4.5 gigawatt partnership with OpenAI valued at over $300 billion across five years.
OpenAI
Uses the Abilene facility for AI model training and inference workloads. The company reassessed near-term infrastructure needs, leading to the expansion cancellation. OpenAI redirected the planned capacity to other sites within the broader Stargate network across multiple states.
Nvidia
Supplies AI semiconductors for the Stargate site and deposited $150 million with Crusoe to facilitate Meta’s discussions. The company aims to ensure its chips power the expansion rather than AMD’s competing products. Nvidia GB200 racks are being deployed at Abilene.
Project Timeline
From White House announcement to expansion cancellation
President Donald Trump announces the Stargate initiative valued at up to $500 billion, involving OpenAI, Oracle, and SoftBank Group to build 10 gigawatts of AI infrastructure.
OpenAI and Oracle enter an agreement to develop 4.5 gigawatts of additional capacity, representing over $300 billion in partnership value over five years.
First two buildings at Abilene become operational. Companies announce plans for 600 MW expansion near the flagship site, alongside five new Stargate locations across Texas, New Mexico, and Ohio.
Oracle and OpenAI abandon the 600 MW Abilene expansion after negotiations stall. Meta enters discussions to lease the capacity from Crusoe, facilitated by Nvidia’s $150 million deposit.
Stargate Data Center Network
Planned AI infrastructure sites across the United States
Infrastructure at Scale
The magnitude of AI data center construction underway
Enough to power approximately 750,000 U.S. homes when fully operational
Additional capacity agreement valued at over $300 billion across five years
Total chips to be deployed across 5+ gigawatts of Stargate capacity, according to OpenAI
Two operational since September 2025, six under construction at Abilene campus
Financial and Technical Context
The Abilene facility sits on approximately 1,000 acres and is being developed by Crusoe on Lancium’s Clean Campus. The site was designed to eventually scale past one gigawatt of capacity and houses Nvidia GB200 racks that Oracle began delivering in June 2025, according to OpenAI’s announcement.
Oracle stock trades at $152.96 as of March 7, 2026, with a 52-week range between $118.86 and $345.72. The stock currently sits approximately 56% below its 52-week high, reflecting concerns about the company’s debt load and capital expenditure requirements for data center expansion.
Technology companies continue investing heavily in AI infrastructure. Meta announced plans to spend up to $135 billion on capital expenditures in 2026, primarily for GPU compute capacity. The company signed a separate multi-year agreement with AMD to deploy up to 6 gigawatts of AMD Instinct AI chips for next-generation infrastructure.
Beyond Abilene, OpenAI and its partners announced five additional Stargate sites in September 2025. Three locations involve Oracle development in Shackelford County, Texas; Doña Ana County, New Mexico; and Wisconsin. Two sites involve SoftBank partnerships in Lordstown, Ohio and Milam County, Texas. These projects collectively bring Stargate to nearly 7 gigawatts of planned capacity.
The decision to cancel the Abilene expansion stems from financing challenges and OpenAI’s evolving compute forecasting. A source familiar with the matter told Reuters that the 600 MW capacity will be fulfilled at other data center campuses within the Stargate network. Construction continues at Abilene on the six remaining buildings planned for the site.
Coverage Summary
The article covered Oracle and OpenAI’s decision to cancel a 600 megawatt expansion at their Abilene, Texas data center. The cancellation followed negotiations over financing and changing infrastructure requirements.
Meta Platforms entered discussions to potentially lease the capacity from developer Crusoe, with Nvidia facilitating these talks. The core 4.5 gigawatt partnership between Oracle and OpenAI was reported to remain on track, with two of eight planned buildings already operational at the Abilene campus.
Information was sourced from Bloomberg’s reporting, OpenAI’s official announcements, and company statements about the broader Stargate initiative.
