Oracle hits back at Stargate data center cancellation reports — claims 4.5GW Oracle-OpenAI agreement still on track

Oracle has pushed back against recent media coverage of its Stargate AI data center project in Abilene, Texas, saying reports about problems at the site are “false and incorrect” while confirming the broader buildout tied to OpenAI remains on track.

In a statement posted to X today, Oracle said it and developer Crusoe are “operating in lockstep” to deliver one of the world’s largest AI data centers at the Abilene campus, adding that two buildings are already operational and the remainder of the site is progressing as planned. The company also said it has completed leasing arrangements for an additional 4.5 gigawatts of capacity to support its commitments to OpenAI.

This rebuttal follows recent reporting from Bloomberg and Reuters that said Oracle and OpenAI had abandoned plans to expand the Abilene site with an additional 600 megawatts of capacity after financing negotiations dragged on and OpenAI’s infrastructure needs shifted.

The Abilene campus, developed by Crusoe, already includes eight data center buildings spanning roughly 1,000 acres, with Oracle operating the facilities as part of its Oracle Cloud Infrastructure footprint. Two buildings are currently running workloads while the remaining structures are still under construction.

The reported change relates specifically to a planned expansion near the existing campus rather than the main Stargate site itself. Sources cited by Reuters have reportedly said that the extra 600 MW originally discussed for Abilene would instead be fulfilled at other data center campuses tied to the broader Stargate rollout. Oracle and OpenAI announced an agreement in July to develop up to 4.5 gigawatts of additional AI data center capacity across multiple U.S. Locations as demand for training and inference continues to surge.

In addition to Reuters reporting, Bloomberg claimed that Meta is evaluating the additional space originally earmarked for OpenAI, with Nvidia helping facilitate discussions to ensure its AI accelerators are used at the site rather than competing hardware from AMD.

Bloomberg’s Ed Ludlow, who co-authored the piece with Brody Ford and Dina Bass, also took to X.com to issue a correction shortly after Oracle’s rebuttal, stating that while Oracle and OpenAI “are not moving ahead with the planned expansion lease,” the separate agreement between the two to develop 4.5 gigawatts of data center capacity for OpenAI “remains on track, with additional projects announced, including a site near Detroit.”

Follow 3DTested on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.