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Oracle has called reports of scrapping its Texas data centre expansion with OpenAI "false and incorrect," saying it and developer Crusoe are "operating in lockstep" at the Abilene site. The response came after Bloomberg reported that expansion talks collapsed over financing and OpenAI's shifting demands. Oracle has piled up over $100 billion in debt funding AI infrastructure, and its stock has roughly halved since September 2025.
Oracle has pushed back against reports that it has scrapped plans to expand a flagship AI data centre in Abilene, Texas, calling media coverage of the situation "false and incorrect.
" In a post on X, the company said it and developer Crusoe are "operating in lockstep" to deliver one of the world's largest AI data centres at the site, adding that two buildings are already fully operational and the rest of the campus is on track.The statement came hours after Bloomberg reported that Oracle and OpenAI had abandoned plans to nearly double the Abilene facility's capacity—from 1.2 gigawatts to roughly 2 gigawatts—after months of negotiations over financing and OpenAI's shifting demand forecasts fell apart.
The report also said the collapsed talks had opened the door for Meta to consider leasing the expansion site from Crusoe, with Nvidia reportedly paying a $150 million deposit to help court Meta as a replacement tenant.Oracle's post did not directly address the Bloomberg report's specifics but said it has "completed leasing for the additional 4.5GW to deliver on our commitments to OpenAI"—a reference to the broader deal signed in mid-2025 to develop 4.5 gigawatts of data centre capacity across multiple US locations.
"We continuously evaluate sites around the world to meet the growing demand for OCI by working with great partners and customers all the time," the company added.
Oracle's AI infrastructure push has come at a steep cost
The Abilene campus is one of the most visible pieces of the Stargate initiative, announced at the White House in January 2025 with President Donald Trump alongside Sam Altman, Masayoshi Son, and Larry Ellison. But the broader project has been dogged by stalled timelines, financing headaches, and disagreements between partners over control and ownership.Oracle's financial exposure has rattled Wall Street. The company has piled up over $100 billion in debt to fund its AI data centre buildout, and its stock has lost roughly half its value since peaking in September 2025—wiping out around $463 billion in market cap. S&P Global has placed Oracle's BBB credit rating on negative watch, and some of its bonds have been trading at levels typically associated with junk debt.
Reliability issues at the Abilene site have added to the strain
Adding to the tension, Bloomberg reported that relations between Oracle and Crusoe have been strained by reliability problems at the site.
Earlier this year, data centre buildings reportedly went offline for days after winter weather knocked out some of the liquid cooling machinery.Investment bank TD Cowen has estimated that Oracle may need to cut 20,000 to 30,000 jobs to free up $8–10 billion in cash flow, and Bloomberg reported last week that layoffs could begin as early as this month. Oracle is scheduled to report fiscal third-quarter earnings on March 10.
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