OpenAI and Oracle have canceled plans to expand a massive artificial intelligence data center campus in Abilene, Texas, citing financing issues and uncertainty over computing demand. The move affects the companies’ ambitious Stargate Project, a multibillion-dollar initiative to build AI infrastructure across the United States.
The Abilene site is already under construction, with eight data centers slated for completion. The expansion would have nearly doubled the campus’ size, adding additional buildings and thousands of servers and high-performance GPUs used to train AI models.
Company officials said the decision does not affect the existing eight data centers, which will continue as planned. Reports indicate the companies struggled to secure funding for the expansion and were unsure about near-term demand for AI computing.
The unused space may attract other tech giants. Meta Platforms is reportedly exploring leasing capacity at the campus, while Nvidia has invested in GPU infrastructure at the site.
Texas has become a hub for large-scale AI projects because of relatively low energy costs, abundant land, and state incentives. The Stargate initiative overall could invest up to $500 billion in AI infrastructure by 2029.
The Abilene campus illustrates the rapid growth and volatility of the AI sector, where companies are constantly adjusting strategies for computing capacity and site locations.