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StocksMedium•7 March 2026•

1 min read

Oracle and OpenAI Scrap Texas Data Center Expansion; Meta Eyes Space

Mark Zuckerberg and Aart de Geus with Meta and Synopsys logos, AI chips, silicon wafers, and data center equipment.

Key Facts

1Oracle and OpenAI scrapped plans to expand the Stargate AI data center in Abilene, Texas, from 1.2 GW to 2.0 GW.

2Talks stalled over financing issues and OpenAI's changing demand forecasts.

Oracle and OpenAI have reportedly canceled plans to expand the Stargate AI data center in Abilene, Texas, which was intended to grow from 1.2 GW to 2.0 GW. The decision follows stalled negotiations linked to financing hurdles and shifting demand projections from OpenAI. Despite the cancellation of this specific expansion, Oracle’s broader 4.5 GW data center agreement with OpenAI remains in place. Meta is currently in discussions to lease the available capacity, with Nvidia reportedly acting as a broker for the potential deal. The news triggered a reversal in Oracle's stock gains and led to a 2.5% decline in Nvidia shares as investors reacted to signs of cooling AI infrastructure investment. Market analysts are closely monitoring these developments for broader implications on the sustainability of AI-related capital expenditures.