Oracle and OpenAI Cancel Plans to Expand Data Center in Texas

Oracle and OpenAI cancel AI data center expansion in Texas (photo: doc. unsplash)

JAKARTA - Oracle and OpenAI have canceled plans to expand their Artificial Intelligence (AI) data center in Texas. This decision was made due to financing problems and protracted technical changes.

Launching from Bloomberg, the canceled project is part of the $500 billion (Rp8.469 trillion) Stargate initiative. This initiative originally involved SoftBank Group to build a 10 gigawatt power infrastructure.

The initial plan, which has now been canceled, includes adding 600 megawatts of power capacity in the Abilene area. However, internal sources say that the need for capacity will be diverted to another data center campus that is being built.

The Abilene location currently has eight buildings operated by Oracle Cloud Infrastructure. Although the expansion was canceled, two of the buildings are already operational and other plans to develop 4.5 gigawatt capacity are still on schedule.

The cancellation of this deal opens the door for Meta Platforms to take over the expansion. Meta is reportedly considering renting land in Abilene from developer Crusoe to strengthen their AI infrastructure.

Nvidia is reportedly facilitating the discussion to ensure the use of its semiconductors in the data center. This step is taken to prevent competitors such as AMD from entering the main infrastructure that is being developed.