OpenAI has partnered with Oracle to build 4.5 gigawatts (GW) of new data centre capacity, one of the largest single expansions in the global AI infrastructure.
The project is part of the Stargate initiative, a $500 billion plan to deliver 10GW of data centre capacity over four years.
This latest phase will increase Stargate’s total planned capacity to over 5GW, which OpenAI says will power more than 2 million chips, primarily Nvidia GB200s. The company stated: “We now expect to exceed our initial commitment thanks to strong momentum with partners including Oracle and SoftBank.”
Interestingly, OpenAI isn’t building the data centres itself. Instead, it has signed a $30 billion multi-year leasing agreement with Oracle, which will own and operate the infrastructure.
Oracle will supply and manage the hardware, while OpenAI focuses on AI model development and deployment. This is a transition from earlier plans that saw SoftBank involved more directly in construction efforts.
In practical terms, the 4.5GW expansion represents about 25% of total operational data centre capacity in the U.S., noting the sheer scale of the Stargate project. The first site, Stargate I in Abilene, Texas, is already partially live, with Nvidia racks installed and initial workloads running.
But the Abilene site has also led to environmental concerns. Its $500 million natural gas plant, built to power the facility, has been objected due to pollution risks and potential health hazards to nearby communities.
On the political aspect, Stargate enjoys direct backing from the U.S. government. Former President Donald Trump unveiled the project at the White House in January 2025 as part of efforts to outpace China in AI development. To accelerate progress, the White House declared a national energy emergency earlier this year, fast-tracking permits for fossil fuel and nuclear plants to support high-energy AI campuses.
Despite the high-profile nature of the project, only $50 billion of the promised $500 billion investment has been raised so far. Immediate deployment of $100 billion has reportedly stalled. Internal disputes between OpenAI and SoftBank over site locations and governance have also emerged, leading to a scaled-down plan to build a smaller data centre in Ohio by the end of 2025.
In January, xAI owner Elon Musk dismissed the venture, stating: “They don’t actually have the money.”
Again, SoftBank and OpenAI are said to be pursuing different visions for Stargate, slowing progress. While OpenAI’s partnership with Oracle accelerates construction, its collaboration with SoftBank has shifted towards site assessments and infrastructure design innovations.
Beyond Stargate, OpenAI continues to diversify its infrastructure partnerships, working with CoreWeave, Crusoe, Cisco, and G42 in the UAE. Its new ‘OpenAI for Countries’ initiative is also helping governments build sovereign AI infrastructure and establish national AI investment funds.
For now, OpenAI predicts the construction and operation of the new 4.5GW capacity will generate over 100,000 jobs across construction and operations in the U.S. alone. Many of these roles, the company says, will be filled by skilled tradespeople, including electricians, equipment operators, and technicians, from over 20 states.
Nonetheless, funding is a concern as timelines are slipping, and internal disagreements could yet derail the project’s long-term goals.
