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Oracle Reaffirms 4.5GW AI Build as Abilene Expansion Lease Falls Through

A dropped 600MW add-on reflects financing friction alongside a pivot to newer Nvidia chips.

Overview

  • Oracle says its multi‑site 4.5‑gigawatt commitment with OpenAI is intact, with two Abilene buildings already running on Nvidia Blackwell racks and the campus targeting roughly 1.2GW by mid‑2026.
  • Bloomberg and Reuters report the separate 600‑megawatt expansion lease at Abilene is not proceeding, a point Oracle’s public rebuttals did not directly address.
  • Reporting attributes the reversal to funding strains, a winter liquid‑cooling outage, power not arriving for about a year, and OpenAI’s preference to deploy on newer Vera Rubin‑class systems.
  • Bloomberg also reported that Nvidia paid a $150 million deposit to hold the vacated Abilene space and sounded out Meta on taking the lease, though no deal has been confirmed.
  • Analysts highlight execution risk as Oracle leans heavily on debt for Stargate, with a partner declining to fund another facility and investor scrutiny rising ahead of earnings.