Oracle and OpenAI have abandoned plans to expand a large artificial intelligence data center in Texas, as prolonged negotiations over financing arrangements and OpenAI’s evolving computing power requirements delayed progress. The change has created an opportunity for Meta, which is now considering leasing the expansion portion of the project. Meta is currently in talks with project developer Crusoe to lease additional capacity at the data center located in Abilene, Texas.

The Abilene data center campus is part of the high-profile “Stargate” project, which was announced last year at the White House by U.S. President Donald Trump. Construction at the campus is ongoing, with some facilities already operational. However, Oracle and OpenAI ultimately decided not to move forward with the previously discussed expansion plans.

The original proposal aimed to increase the data center’s capacity from 1.2 gigawatts to approximately 2.0 gigawatts. Gigawatt-scale data centers are massive in scope — one gigawatt of power is roughly equivalent to the output of a nuclear reactor and can supply electricity to approximately 750,000 homes.

The breakdown in negotiations stemmed from complex financing arrangements and OpenAI’s frequently shifting forecasts for computing demand. In addition, the facility had previously experienced several days of downtime due to winter weather affecting its liquid cooling systems, further intensifying tensions between Oracle and Crusoe.

Despite these developments, both sides emphasized that their broader partnership remains solid. In a statement, Oracle said it is proud of its collaboration with Crusoe and the progress of the project. Crusoe also stated that the companies are jointly building one of the world’s largest AI computing infrastructure platforms.

Meanwhile, Nvidia has paid a $150 million deposit to Crusoe to ensure its chips continue to be deployed in the project and has helped facilitate discussions for Meta to become a potential tenant for the expansion.

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It is worth noting that the overall cooperation between Oracle and OpenAI remains unaffected. In July last year, Oracle agreed to develop 4.5 gigawatts of data center capacity for OpenAI. Related projects are still advancing, including additional data center developments near Detroit.