Oracle and OpenAI expand Stargate agreement for US data centers

Yevgeny Demkivskyi - 3 July, 11:59 AM

OpenAI and Oracle Corp have signed a deal under Project Stargate, under which OpenAI will lease 4.5 gigawatts of data center capacity in the United States. The deal is part of a $30 billion-a-year contract, Bloomberg reported, citing anonymous sources.

The 4.5 GW capacity is equivalent to the power of several nuclear reactors and could power millions of American homes. Oracle plans to expand its existing data center in Abilene, Texas (from 1.2 GW to 2 GW), as well as build new facilities in Texas, Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio and Pennsylvania.

Launched in January 2025 at a White House meeting, Project Stargate is a $500 billion investment in AI infrastructure with Oracle, SoftBank, and Crusoe. The new phase supports OpenAI’s growing need for computing resources to develop cutting-edge AI technologies.

Oracle shares rose 5% to $229.98 on the news, hitting an all-time high. But S&P warned that the company's aggressive cloud infrastructure expansion could strain its cash flow. OpenAI and Crusoe declined to comment on the deal, and Oracle did not respond to a request for comment.