By Shubhangi Chowdhury
OpenAI is stepping up its AI game with a massive new deal. The AI company will rent an additional 4.5 gigawatts of data center power from Oracle, worth $30 billion. This move comes as a part of the Stargate initiative.
This additional 4.5 gigawatts of data center power is a major win for America’s digital and economic future. This kind of power capacity means the U.S. can host some of the world’s most advanced AI systems right at home, without relying too heavily on foreign infrastructure. It strengthens national tech independence, creates thousands of high-skill jobs across states like Texas, Michigan, and Wisconsin, and turns underserved regions into future tech hubs.
READ: OpenAI looks for sites to build Trump-backed Stargate data centers (February 10, 2025)
Stargate is a $500 billion AI infrastructure project led by OpenAI and Oracle in participation with SoftBank Group and other partners to set up giant data centers across the U.S. that can fuel the next wave of AI advancements including efforts toward AGI (Artificial General Intelligence), a kind of AI that could one day think and reason like humans.
OpenAI announced this Stargate initiative back in January 2025. Since then, Oracle has been working closely with development partner Crusoe and has already built a massive data center for OpenAI in Abilene, Texas.
According to sources familiar with the matter, several other locations are on the table with Texas, Michigan, Wisconsin, and Wyoming actively being considered. The Abilene site itself is set for a major expansion with plans to ramp up its current power capacity from 1.2 gigawatts to around 2 gigawatts. OpenAI is also eyeing potential new sites in states like New Mexico, Georgia, Ohio, and Pennsylvania.
These data centers are going to be the backbone of OpenAI’s next wave of innovation. Their primary purpose is to provide the massive computational power needed to train and run advanced AI models. Beyond AI research, these centers will also serve as high-performance infrastructure for the U.S.
Earlier this week, tech giant Oracle had announced a massive cloud worth $30 billion a year, starting to reflect in its revenue from fiscal 2028. While the official filing didn’t name the client, according to the Bloomberg, it’s one of the biggest cloud deals ever made. To put it in perspective, this single deal could nearly triple the size of Oracle’s current infrastructure business.
READ: Oracle signs annual cloud deal worth $30 billion (July 1, 2025)
OpenAI has been on a major infrastructure push lately. The AI company deepened its infrastructure strategy by partnering with Google Cloud to handle the rising demand for AI workloads. This move, finalized in May and announced in June, gives OpenAI access to high-performance computing power to scale its AI services efficiently.
It’s a key step in keeping up with a rapidly growing industry, where the AI data center market is expected to balloon from $13.67 billion in 2024 to nearly $79 billion by 2032. OpenAI is also adopting newer technologies like liquid cooling and energy-efficient chips—signs it’s thinking long-term about sustainability and scalability. This partnership puts OpenAI in strong competition with tech giants like Amazon and Microsoft, positioning it to stay agile, innovative, and ready for the next wave of AI demand.