Flagship Stargate Data Center Campus Expansion in Texas is Questioned

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

In a response to a Bloomberg story released Friday, Oracle said that plans for the flagship Stargate Project data center campus in Abeline, Texas, remain in place, but the report of the cancellation of an expansion at the facility may be old news for Industrial Info subscribers.

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Unclear Scope

There's an air of confusion in regard to a recent Bloomberg report regarding OpenAI and Oracle's plans for the flagship campus of their $500 billion, nationwide Stargate Project data center scheme. Bloomberg reported on Friday that plans to expand the Abilene, Texas, campus are off the table, but confirmed details remain up in the air. Bloomberg reported that difficulty between OpenAI and Oracle in reaching terms over issues such as financing details and capacity forecasts led to a breakdown in plans. In addition, Oracle reportedly has had reliability issues with primary builder Crusoe, which may have caused other tensions, according to the news service.

However, this may be old news. Final plans for one portion of the project called for the construction of eight data centers. As part of these plans, two other buildings were on the planning table, but Industrial Info listed these as cancelled in project updates from September.

At the moment, two buildings of the Abilene campus have been completed and are operating, with more under construction. Work is underway on both the project's Longhorn and Hamby sections of the project, confirmed by satellite imagery. The final building on the Hamby portion could be possible be completed by the end of 2029. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn by viewing the reports on the active and completed portions of the project as well as for the two cancelled buildings.

Bloomberg reported that Crusoe, which has an interest in continuing the development, has been in talks with Meta Platforms about using the freed space and capacity in Abilene, possibly referring to the space that was to be occupied by the two cancelled buildings.

Confirmation & Denial

Information from the OpenAI and Oracle camps has been mixed. On Friday, Sachin Katti, a key infrastructure leader for OpenAI who is involved in building out the company's facilities, posted on X, "Our flagship Stargate site is one of the largest AI [artificial intelligence] data center campuses in the United States. We considered expanding it further, but ultimately chose to put that additional capacity in other locations." This is thought to be referring to the two cancelled buildings, which have held that status for several months, rather than any future buildout.

Katti, who was chief technology officer at Intel before leaving that company late last year to join OpenAI, went on to repost another X posting he had made on the same day in which he touted the beginning of work at another Stargate Project campus in Port Washington, Wisconsin. Industrial Info's project reports on the Port Washington construction show that first building coming online next year, followed by construction of up 10 more buildings at the site.

While Katti appeared to confirm that expansion plans for Abilene were off the table, Oracle issued its own company post on X a couple of days later, which was also reposted by Katti: "Recent media activity about the Abilene site are false and incorrect," Oracle said in its post late Sunday evening.

Cloudy Future

Whether more clarity emerges in the coming days regarding the Stargate Project's flagship Texas campus remains to be seen. What is certain is that Oracle and OpenAI continue to developplans for the multiple campuses that are part of the Stargate Project, which was announced within days of President Donald Trump beginning his second term in office. In addition to the Port Washington buildings, the Stargate Project includes another location in Texas as well as planned facilities in Ohio, New Mexico and Michigan. Subscribers can learn more by viewing the related project report.

Key Takeaways

• A Bloomberg article last week called into question the extent of construction planned for the Stargate Project's flagship data center campus in Abilene, Texas.
• The report could have been referring to two buildings that IIR noted as being cancelled in September of last year.
• The Stargate Project's plans include multiple data center campuses across the U.S., including another planned in Texas.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).