OpenAI & Oracle: The US$30bn Data Centre Deal for Stargate

OpenAI has agreed to rent a further 4.5 gigawatts of data centre power capacity from Oracle in a $30bn deal to support its participation in the Stargate initiative.

The agreement forms part of Stargate, a $500bn AI infrastructure project led by OpenAI and Oracle alongside SoftBank Group and other partners – aiming to construct large-scale data centres across the US to support the development of advanced AI models and potentially artificial general intelligence (AGI), a theoretical form of AI that could match human cognitive abilities.

OpenAI announced in January 2025 that it would purchase computing power from Oracle specifically for AI applications.

Oracle, which provides database software and cloud computing services, has been developing a data centre in Abilene, Texas, for OpenAI’s use.

Oracle’s expanded data centre footprint across multiple states

Oracle faces unprecedented demand for data centre capacity as a result of this partnership.

Bloomberg reports that the database company plans to develop multiple data centres across the US with various business partners to meet OpenAI’s requirements.

The locations under consideration include Texas, Michigan, Wisconsin and Wyoming, in addition to the existing Abilene facility.

OpenAI is also evaluating sites in New Mexico, Georgia, Ohio and Pennsylvania for potential data centre development.

The 4.5GW of power capacity represents roughly one quarter of current operational data centre capacity in the US.

A gigawatt of power can typically support between 500,000 to one million homes, depending on usage patterns.

Stargate has raised approximately US$50bn from its founding partners, according to The Financial Times.

These include Oracle and MGX, an investment fund backed by Abu Dhabi.

In 2025, Oracle generated US$10.3bn in annual revenue from its data centre infrastructure business, just over one third of the expected value from the OpenAI agreement.

Oracle’s cloud infrastructure investment accelerates

Oracle announced a US$5bn investment plan in March 2025 to expand its cloud infrastructure across the United Kingdom over the next five years.

The investment supports expansion of its distributed cloud portfolio, which includes public cloud regions and dedicated cloud capabilities for organisations requiring strict control over their computing resources.

The company also offers hybrid cloud services for businesses that maintain on-premises operations alongside cloud-based systems.

Despite entering the cloud market later than competitors such as Amazon Web Services (AWS) and Microsoft Azure, Oracle has experienced significant demand growth for its infrastructure as companies seek to expand their data centre assets to support AI applications.

Oracle has constructed a network of data centres to support these cloud computing services, with a focus on energy efficiency and sustainability.

The company explores technologies including AI and machine learning to optimise its data centre operations.

Oracle has also pledged to invest US$7bn in the Stargate venture and plans to spend US$25bn in capital expenditure next year.

Larry Ellison, Co-founder and Chief Technology Officer at Oracle, has positioned the company as a leader in cloud infrastructure development.

“Oracle will be the number one builder and operator of cloud infrastructure data centres,”  the tells investors.

“We will build and operate more cloud infrastructure data centres than all of our cloud infrastructure competitors.”

Larry appeared on stage with US President Donald Trump at the start of the year, alongside OpenAI CEO Sam Altman and SoftBank head Masayoshi Son to announce the Stargate initiative.