OpenAI, Oracle abandon 2 GW AI data center expansion in Texas

OpenAI and Oracle have decided to abandon their planned expansion of the Abilene, Texas AI data center from 1.2 gigawatts to 2 gigawatts, according to Bloomberg. This move follows prolonged financing negotiations and changing infrastructure demands for AI development. The Abilene site is part of the Stargate initiative, a large-scale joint venture involving OpenAI, Oracle, and SoftBank aimed at building advanced AI computing infrastructure. Despite halting the expansion, construction continues at the existing facility, and both companies remain committed to operating within the Stargate project, which still represents one of the most ambitious AI infrastructure efforts in the U.S. The decision to pause the expansion was influenced by financing challenges and shifting demand forecasts, prompting OpenAI to reassess its near-term infrastructure needs. Meanwhile, Meta Platforms is reportedly exploring leasing the additional capacity originally planned for the Abilene site. NVIDIA, a key supplier of AI processors, played a role in directing Meta toward this opportunity, emphasizing the