OpenAI has signed a historic $30 billion per year agreement with Oracle, marking one of the largest cloud infrastructure deals ever seen in the technology sector. The multi-year contract will see OpenAI lease an unprecedented 4.5 gigawatts (GW) of data centre capacity from Oracle, spanning multiple locations across the United States. This massive investment is a cornerstone of OpenAI’s ambitious Project Stargate, aimed at supporting the next wave of advanced artificial intelligence models and applications.
Under the agreement, Oracle will build and expand hyperscale data centres in states including Texas, Michigan, Ohio, Wisconsin, Pennsylvania, New Mexico, Georgia, and Wyoming. The centrepiece of this expansion is a “Supercluster” campus in Abilene, Texas, which will grow from 1.2GW to 2GW and eventually house up to 400,000 Nvidia GB200 AI chips—representing a hardware investment of nearly $40 billion.
The scale of the deal is staggering: 4.5GW is enough electricity to power millions of homes, reflecting the immense energy requirements of next-generation AI systems. For context, this single contract is nearly triple Oracle’s 2025 cloud infrastructure revenue and will more than double the company’s cloud business when annual revenue recognition begins in 2028.
Project Stargate is a $500 billion initiative, backed by OpenAI, Oracle, SoftBank, and the US government, to build out state-of-the-art AI data centre infrastructure over four years. The goal is to provide the computing backbone for developing and deploying increasingly powerful AI models, while diversifying OpenAI’s cloud partnerships beyond Microsoft Azure. OpenAI is also collaborating with CoreWeave and Google Cloud as part of a broader multi-cloud strategy.
The Stargate project isn’t limited to the US. OpenAI and Oracle are planning a similar data centre campus in the United Arab Emirates, with additional partners such as Nvidia, Cisco, SoftBank, and G42, highlighting the global scale and ambition of the initiative.
The agreement cements Oracle as a key infrastructure provider in the escalating AI compute arms race, challenging the dominance of Amazon Web Services and Microsoft Azure in the hyperscale cloud market. Oracle’s share price soared to record highs following the announcement, with analysts predicting the deal could more than double the company’s data centre revenues and fundamentally reshape its position in the AI cloud market.
The deal underscores the immense energy and capital investment required for AI at scale. Experts warn that AI-optimized data centres could quadruple their electricity consumption by 2030, making infrastructure as critical as software in the AI era.