Microsoft will take control of a data center with about 1 GW of power in Texas that Oracle and OpenAI were unable to manage.

Stargate Project Launch: How the AI Infrastructure Build Plan in Texas Has Changed

At the beginning of his second presidential term, Donald Trump announced the launch of a large-scale project called “Stargate.” Its goal is to raise up to $500 billion for building data centers (DCs) for artificial intelligence across the country over four years.

1. Withdrawal of OpenAI and Oracle
It has recently become known that OpenAI and Oracle have pulled out of constructing part of the facilities in Texas. They were replaced by Microsoft – the largest investor and long‑term partner of OpenAI. This decision is linked to the fact that both technology giants reassessed their financial capabilities: they are already involved in multibillion‑dollar debts, and further investments in AI infrastructure have become untenable for them.

2. Reduced Scale in Abilene
In early March it was announced that the flagship DC of the project in the Texas city of Abilene would be built on a smaller scale than originally planned. OpenAI and Oracle acknowledged that their resources were limited, so the scope of work had to be scaled back.

3. New Participants and Timelines
According to recent Bloomberg data, Microsoft will take over the implementation of this part of the project. The company has already agreed to lease a new data center and connect it to power grids by mid‑next year. In the future, the building is planned to house computing systems with a total capacity of up to 900 MW.

4. Summary
Thus, the originally envisioned large AI infrastructure in Texas is now being realized under a more moderate scenario and with Microsoft instead of OpenAI and Oracle. This reflects the real financial burden on technology giants and demonstrates the flexibility of the Stargate project strategy.