What OpenAI & Oracle's US$30bn Deal Means for Data Centres

OpenAI is set to bolster its computational resources by renting an additional 4.5GW of data centre power from Oracle in the United States.

This venture signifies a US$30bn investment designed to support OpenAI’s ongoing expansion efforts.

Bloomberg reports that this procurement is a critical part of the Stargate initiative, a US$500bn infrastructure project steered by OpenAI and Oracle, in collaboration with SoftBank and other key stakeholders.

The ultimate objective is to establish large-scale data centres across the US, reinforcing the development of sophisticated AI models and potentially advancing toward artificial general intelligence (AGI).

The demand for data centre capacity initiated by this partnership compels Oracle to expand its infrastructure rapidly.

With OpenAI’s ambition to secure a comprehensive computing foundation, Oracle is set to develop multiple data hubs throughout the US to accommodate this need.

The race to build AI-ready data centres

Oracle intends to construct data centres in various states including Texas, Michigan, Wisconsin and Wyoming, supplementing the establishment already underway in Abilene, Texas.

These regions are carefully chosen for strategic reasons linked to energy efficiency and access to resources.

OpenAI is also evaluating additional sites such as New Mexico, Georgia, Ohio and Pennsylvania for its expanding operations.

Backed by critical investments from founders including the Abu Dhabi fund MGX, Stargate has accrued approximately US$50bn.

This initiative is poised to transform Oracle’s data centre profits substantially, estimating a jump to US$10.3bn in annual revenue by leveraging this strategic alliance.

The envisioned 4.5GW power capacity acquired by OpenAI through Oracle's infrastructure represents a quarter of the existing operational data centre capacity in the US, illustrating the magnitude of this development.

Oracle’s data centre push

In March 2025, Oracle announced a US$5bn investment plan over the next five years to expand its cloud infrastructure across the UK.

This expansion is critical for supporting distributed cloud services that include public cloud regions and hybrid cloud offerings essential for clients that prefer on-premises operations.

Although Oracle's foray into cloud infrastructure initially lagged behind competitors, it has seen a surge in demand driven by the AI sector.

Its investments focus significantly on the incorporation of technologies like AI and machine learning to enhance operational efficiencies and sustainability in data centres.
Oracle is also pledging an additional US$7bn towards Stargate, along with plans to allocate US$25bn in capital expenditures next year to solidify its position as a leading provider of cloud infrastructure solutions.

“Oracle will be the number one builder and operator of cloud infrastructure data centres,” Larry Ellison told investors earlier this year, as reported by The Financial Times. “We will build and operate more cloud infrastructure data centres than all of our cloud infrastructure competitors.”

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