According to a recent report by Bloomberg, Oracle and OpenAI have abandoned plans to expand the "Stargate" AI data center park in Texas, USA, due to protracted financing negotiations and changes in OpenAI's needs. This park is being built by Crusoe, an American AI data center developer, and Meta is currently negotiating to take over the lease.

Nvidia is helping to secure Meta as a new tenant for the expansion project, the anonymous source said. Oracle and OpenAI used Nvidia's AI chips in the "Stargate" project. After the two companies gave up their expansion plans, Nvidia paid Crusoe a $150 million (approximately RMB 1.033 billion) deposit to ensure that Crusoe's data center continued to use Nvidia's chips instead of products from rival AMD.

Meta and OpenAI declined to comment, and Nvidia did not respond. On March 9, Oracle issued a statement on the

▲Oracle statement picture (Source: X)

The "Stargate" project was launched in January last year. In July last year, Oracle promised to develop a data center with a total power of 4.5 gigawatts of computing power for OpenAI. After that, the two parties announced multiple projects in other areas, such as the data center project operated by data center developer Related Digital near Detroit. The data center built by Crusoe in Abilene is one of the most watched data centers in the "Stargate" project.

Oracle has been rapidly deploying servers on its Abilene campus for OpenAI to use for training and product deployment. As early as mid-2025, Oracle, Crusoe and OpenAI have begun discussions to expand the capacity of the facility from 1.2 GW to approximately 2.0 GW. The power scale of 1 GWh is equivalent to the power generation of a nuclear reactor and can power approximately 750,000 households at the same time.

People familiar with the matter said that although some facilities in the Abilene project park were put into operation, they reached a deadlock due to financing issues and OpenAI's frequently changing demand forecasts. In the end, negotiations broke down, and Oracle and OpenAI chose to give up leasing the site for large-scale expansion.

In addition, earlier this year, due to the winter weather, some liquid cooling equipment failed, causing the data center to be shut down for many consecutive days. The relationship between Oracle and Crusoe also became tense.

On March 7, when news broke that Oracle and OpenAI decided to cancel the expansion, Nvidia's stock price gave up its early gains. As of the close of the New York Stock Exchange that day, its stock price fell 3.01%, closing at $177.82.

▲Nvidia stock price chart (Source: Tencent Optional Stocks)

On the same day, Sachin Katti, director of OpenAI's infrastructure department, wrote on social media: "Our flagship 'Stargate' campus is one of the largest AI data center campuses in the United States. We considered further expansion, but ultimately decided to deploy the new computing capacity to other regions."

▲Sachin Katti’s speech on social media (Source: X)

Conclusion: Capital expenditures surge and data center construction boom continues

At present, although there are some fluctuations in the "Stargate" project between OpenAI and Oracle, looking at the entire industry, the construction of data centers is still continuing. For example, the 1 GW system deployed by Nvidia and OpenAI will be online in the second half of 2026, and Meta has reached an agreement with AMD to deploy approximately 6 GW of AI computing power equipment.

As far as the enterprise itself is concerned, building its own data center means being able to dominate computing power, get rid of external constraints, reduce costs from the source, and build long-term competition barriers. Even though AI data center construction costs tens of billions of dollars, companies still want to build their own computing infrastructure.