OpenAI and Oracle expand Texas data center

OpenAI and Oracle expand Texas data center

September 12, 2025 -- Oracle (NYSE:ORCL) and OpenAI are set to announce an expansion of their data center in Abilene, Texas, according to a report from The Information. The announcement is expected to be made by OpenAI CEO Sam Altman and Oracle’s new co-CEO Clay Magouryk .

The expansion comes as part of a larger initiative by OpenAI, SoftBank, and Oracle to invest up to $500 billion in U.S. artificial intelligence infrastructure. The project, known as the Stargate data center, aims to create over 100,000 jobs nationwide .

Abilene, a city of about 130,000 residents, was chosen as the first location for this massive initiative. The city is home to the first campus of the Stargate project, which is already under construction on a 1,000-acre tract known as the Lancium Clean Campus. The initial phase includes ten sprawling data center buildings, each around 500,000 square feet in size .

Oracle Cloud currently operates data centers in the Abilene area, and the expansion is expected to further strengthen its presence in the region. The Abilene data center campus is expected to draw an almost unprecedented amount of power: roughly 1.2 gigawatts (1,200 MW) at full scale, necessitating the construction of an on-site natural gas power plant for reliable electricity supply .

The expansion is part of a broader trend of increased investment in AI infrastructure. The construction of large data centers like the Stargate project has significantly boosted demand for specialized trucking services, including hot shot trucking and white-glove freight services. These services are crucial for the timely and safe delivery of heavy and delicate equipment needed for the construction and operation of these facilities .

The economic impact of the Stargate project is expected to be significant, with job creation, capital investment, and infrastructure upgrades all contributing to the region's growth. If successful, the Abilene site could turn the region into a mini tech hub focused on AI infrastructure, diversifying the local economy historically driven by agriculture, energy, and the military .