Oracle and OpenAI cancel plans to expand Abilene Stargate data center campus

Development Data Center announced Abilene, United States Mar 6, 2026

2 GW

Capacity

development

Stage

Abilene Stargate data center campus

Project

Oracle and OpenAI have canceled plans to expand their Abilene Stargate data center campus from 1.2GW to 2GW due to financing challenges and changing demand.

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Counterparts (4)

Developer

Crusoe

company

Crusoe Energy Systems provides innovative solutions for energy-intensive computation. They focus on reducing the environmental impact of digital infrastructure by utilizing stranded and underutilized energy resources.

Partner

Oracle

company

Oracle is a technology company that provides a wide range of cloud computing services, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). They are a major player in the data center and cloud infrastructure space, providing solutions for various industries.

OpenAI

company

OpenAI is focused on artificial intelligence research and deployment. While not directly an infrastructure investor, its activities in AI require significant computing power, leading to investment and development in data centers and related energy infrastructure.

Lancium

company

Houston-based energy technology company that develops and operates flexible data centers for high-performance computing, leveraging proprietary software to optimize energy consumption and integrate with renewable energy sources. The company has announced over 1 GW of data center capacity in development.

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Deal Analysis

The planned expansion of the Abilene Stargate data center campus, set to grow from 1.2GW to 2GW, has been canceled by Oracle and OpenAI. This significant development, announced March 6, 2026, points to both financing challenges and evolving demand for the hyperscale AI infrastructure. Partners like Crusoe, focused on reducing the environmental impact of energy-intensive computation, and Lancium, an energy technology firm optimizing flexible data centers, were involved in the Texas project. The decision suggests a recalibration of capital deployment for major AI computing facilities.

2GW expansion of Abilene Stargate data center campus canceled.
Oracle and OpenAI pulled back from the Texas project.
Involved specialized energy tech firms Crusoe and Lancium.
Reasons cited: financing challenges and changing demand.

Source Intelligence

KEY DETAILS

The expansion plans were canceled due to 'financing challenges and OpenAI’s frequently changing demand forecasting and shifting view of Stargate.' The existing site has a total capacity of around 1.2GW. A multi-day outage caused by winter weather impacting liquid cooling equipment reportedly damaged relations between OpenAI and Crusoe. Power will not be ready at the site for a year. OpenAI hopes to deploy Nvidia Vera Rubin chips at a new campus instead of Blackwell GPUs at Abilene. OpenAI has more than half a dozen sites under development across multiple states, including one with Oracle in Wisconsin. Nvidia's $150 million deposit to Crusoe is 'aimed at ensuring a rival chip designer's product does not end up in data centers at the site'.

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Deal Size

Nvidia has reportedly paid a $150 million deposit to Crusoe to secure the site and is in talks with Meta.

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Capacity

The two companies were then expected to grow the site to 2GW. However, Bloomberg reports , this expansion has been canceled.

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Location

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

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Financials

Nvidia has reportedly paid a $150 million deposit to Crusoe to secure the site and is in talks with Meta.

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Announcement

March 06, 2026 By Sebastian Moss Have your say Oracle and OpenAI have canceled plans to expand their flagship Abilene Stargate data center campus.

PARTIES MENTIONED IN SOURCE

Oracle partner

"Oracle and OpenAI have canceled plans to expand their flagship Abilene Stargate data center campus."

OpenAI partner

"Oracle and OpenAI have canceled plans to expand their flagship Abilene Stargate data center campus."

Crusoe developer

"The project is developed by Crusoe on Lancium's Clean Campus in Texas"

Lancium campus owner

"The project is developed by Crusoe on Lancium's Clean Campus in Texas"

Nvidia investor

"GPU giant Nvidia has stepped in to try to help Crusoe lease the remaining capacity to Meta. In an unusual move aimed at ensuring a rival chip designer's product does not end up in data centers at the site, the company has reportedly paid a $150 million deposit to Crusoe to secure the site and is in talks with Meta."

Meta potential buyer

"GPU giant Nvidia has stepped in to try to help Crusoe lease the remaining capacity to Meta."

SoftBank backer

"Fellow Stargate backer SoftBank is also turning to debt to fund OpenAI's expansion, and is currently seeking $40bn in loans."

high quality Enriched Mar 9, 2026

Timeline

Announced

Mar 6, 2026

Signed

Closed

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Source

www.datacenterdynamics.com

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Oracle and OpenAI cancel plans to expand Abilene Stargate data center campus

Counterparts (4)

Deal Analysis

Source Intelligence

Timeline

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