Global Infrastructure SherpaOracle and OpenAI cancel expansion of Abilene Stargate data center campus
Oracle and OpenAI canceled plans to expand their Abilene Stargate data center campus to 2GW due to financing challenges and changing demand.
Counterparts (4)
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- Abilene Stargate data center campus expansion canceled.
- 2GW capacity expansion halted by Oracle and OpenAI.
- Developers include Oracle, OpenAI, Crusoe, and Lancium.
- Reasons cited: financing challenges and changing demand.
Source Intelligence
Oracle and OpenAI canceled plans to expand their flagship Abilene Stargate data center campus. The expansion was complicated by financing challenges and OpenAI’s frequently changing demand forecasting and shifting view of Stargate. A multi-day outage this year caused by winter weather reportedly damaged relations between OpenAI and Crusoe. OpenAI chose to put additional capacity in other locations. Nvidia has paid a $150 million deposit to Crusoe to secure the site and is in talks with Meta to lease remaining capacity. A deal between Crusoe and Meta has yet to be signed.
"Oracle and OpenAI have canceled plans to expand their flagship Abilene Stargate data center campus."
"Oracle and OpenAI have canceled plans to expand their flagship Abilene Stargate data center campus."
"The project is developed by Crusoe on Lancium's Clean Campus in Texas"
"on Lancium's Clean Campus in Texas"
"GPU giant Nvidia has stepped in to try to help Crusoe lease the remaining capacity to Meta."
"GPU giant Nvidia has stepped in to try to help Crusoe lease the remaining capacity to Meta."
"Fellow Stargate backer SoftBank is also turning to debt to fund OpenAI's expansion"
Timeline
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