Krux
March 8, 2026
OpenAI Pulls Out of Texas Data Center, Meta Steps In
Published: March 8, 2026 at 12:32 AM
Updated: March 8, 2026 at 12:32 AM
100-word summary
OpenAI and Oracle scrapped plans to expand their Abilene, Texas data center after talks collapsed over financing and OpenAI's shifting demand forecasts. The site was set to grow from 1.2 gigawatts to 2.0 gigawatts. Meta immediately emerged as a potential tenant, with Nvidia brokering the conversation. The timing is revealing: OpenAI can't justify the extra capacity, but Meta is throwing $135 billion at AI infrastructure this year. The base Abilene site is still under construction, and the broader Stargate program targeting 4.5 gigawatts across multiple U.S. locations continues. One company's doubt is another's opportunity.
What happened
OpenAI and Oracle scrapped plans to expand their Abilene, Texas data center after talks collapsed over financing and OpenAI's shifting demand forecasts. The site was set to grow from 1.2 gigawatts to 2.0 gigawatts. Meta immediately emerged as a potential tenant, with Nvidia brokering the conversation. The timing is revealing: OpenAI can't justify the extra capacity, but Meta is throwing $135 billion at AI infrastructure this year. The base Abilene site is still under construction, and the broader Stargate program targeting 4.5 gigawatts across multiple U.S. locations continues.
Why it matters
One company's doubt is another's opportunity.