Since mid-2025, Oracle, Crusoe, and OpenAI have discussed increasing data center power capacity from about 1.2 GW to roughly 2.0 GW, amid reluctance from locals. Negotiations got complicated due to difficult financing terms and OpenAI’s shifting capacity forecasts, which led to their collapse, according to Bloomberg . Nonetheless, development of the 1,000-acre campus remains underway, and multiple facilities are already in service, though preliminary agreements to rent a substantial expansion were ultimately dropped. Could it be a signal that the Stargate project fails while the whole AI industry is on the rise?
The Abilene campus remains one of the biggest AI data center projects announced so far, yet to date, it has been known primarily as a part of the widely publicized Stargate project. Oracle has been rapidly installing Nvidia-based servers used by OpenAI to train and deploy AI models and systems. However, relations between Oracle and Crusoe have been strained by reliability issues. Earlier this year, winter weather disrupted parts of the liquid-cooling infrastructure, forcing several buildings offline for multiple days. Both companies say cooperation remains strong and development continues swiftly, yet the source report clearly notes hiccups.
Stargate AI data centers for OpenAI reportedly delayed by squabbles between partners
Oracle reportedly delays several new OpenAI data centers because of shortages
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/artificial-intelligence/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/artificial-intelligence/openais-massive-stargate-data-center-canceled-as-firm-cant-reach-terms-with-oracle-operator-struggles-with-reliability-issues-meta-said-to-be-interested-in-snatching-excess-capacity#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.