• OpenAI to rent 4.5 Gigawatts of data center power from Oracle for Stargate initiative.
• Oracle’s $30 billion cloud deal is partially tied to OpenAI’s Stargate; new data centers are planned.
• Oracle’s stock hits record high, up 38% in 2025, driven by AI cloud demand.

OpenAI has partnered with Oracle Corp. to rent approximately 4.5 Gigawatts of data center power across the United States, a significant move to support its ambitious Stargate initiative.

This unprecedented energy capacity, equivalent to the output of four to five nuclear reactors, could power millions of American homes, with one gigawatt capable of supplying electricity to about 750,000 households.

Oracle has already constructed a huge data facility at Abilene, Texas, using OpenAI development partner Crusoe; currently, the facility has a power capacity of 1.2 Gigawatts.

Plans are underway to expand this facility to approximately 2 Gigawatts. In order to support the added computing requirements of OpenAI, Oracle will deploy several new data centers in states including Texas, Michigan, Wisconsin and Wyoming, though there is also consideration on potential data centers in New Mexico, Georgia, Ohio, and Pennsylvania. These projects will form part of the Stargate initiative

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Oracle disclosed a single cloud deal projected to generate $30 billion in annual revenue starting in fiscal 2028, without identifying the customer. One source indicated that the Stargate agreement constitutes at least a portion of this contract.

Oracle, traditionally known for its database software, has gained significant market share in cloud computing by targeting AI-focused clients, boosting both revenue and expenses. However, S&P noted on Wednesday that Oracle’s aggressive cloud infrastructure investments are straining cash flow, though the ratings firm remains optimistic about the company’s long-term cloud strategy.