OpenAI, Oracle (ORCL), and SoftBank (SFTBY) announced they would supercharge their Stargate AI infrastructure project with five new U.S. data centers. The expansion will boost Stargate’s planned capacity to nearly 7 gigawatts and represents over $400 billion in investment over the next three years.
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For context, the Stargate project was launched earlier this year under President Donald Trump. It aims to make the U.S. a global AI leader by building a nationwide infrastructure for advanced AI research and development.
More Details About the Expansion
Under this expansion, the three new sites are planned in Shackelford County, Texas; Doña Ana County, New Mexico; and a yet-to-be-named Midwest location. Along with this, two more data center sites will be built in Lordstown, Ohio, and Milam County, Texas. Notably, the five new sites were selected after a thorough nationwide search that began in January, during which OpenAI, Oracle, and SoftBank evaluated over 300 proposals from more than 30 states.
Altogether, these projects are expected to create more than 25,000 onsite jobs and tens of thousands of related jobs across the U.S. The partners are still reviewing other potential locations. This progress puts the companies on track to surpass their original $500 billion pledge for U.S. AI infrastructure, announced in January 2025.
This expansion comes after OpenAI and Oracle agreed in July to add up to 4.5 gigawatts of Stargate capacity.
Is ORCL Stock a Buy?
Overall, Wall Street has a Moderate Buy consensus rating on ORCL stock, based on 25 Buys and nine Holds assigned in the last three months. The average Oracle stock price target of $343.07 implies about 9.32% upside from current levels.
