Oracle will supply massive compute power to OpenAI as part of a new contract reported at $30 billion annually focused on accelerating Sam Altman’s ambitions for Stargate, the initiative to build U.S. data centers announced in January by President Trump as a matter of national security. OpenAI committed $500 billion over four years to the project. The Oracle deal involves an estimated 4.5 gigawatts of U.S. data center power consumption, equivalent to the power output of four-and-a-half nuclear reactors operating at full capacity — enough to power approximately 3.3 million U.S. households during that time.

“Earlier this week, Oracle announced that it had signed a single cloud deal worth $30 billion in annual revenue beginning in fiscal 2028 without naming the customer. This Stargate agreement makes up at least part of that disclosed contract,” reports Bloomberg, implying that OpenAI will likely use some of the capacity for non-Stargate computing.

Oracle was announced as a Stargate partner when the project launched, though neither Oracle nor OpenAI have confirmed details of a $30 billion deal between the two. Bloomberg reported on June 30 that Oracle “signed a single cloud deal worth $30 billion in annual revenue — more than the current size of its entire cloud infrastructure business.”

To meet increased demand, Oracle plans to build new data centers across the U.S. with partners, notes Bloomberg. “Sites in states including Texas, Michigan, Wisconsin and Wyoming are under consideration,” with OpenAI “considering sites in New Mexico, Georgia, Ohio and Pennsylvania.”

Oracle is already underway in expanding a data center in Abilene, Texas, in partnership with Crusoe, launched in 2018 with a focus on crypto mining that subsequently shifted to cloud computing and AI infrastructure.

In May, The Wall Street Journal wrote that startup Crusoe had “secured $11.6 billion in new funding” to expand the site for OpenAI, with completion expected in 2026 for the site that was at the time of writing “expected to be the largest used by OpenAI.”

The Abilene site will grow “from a current power capacity of 1.2 gigawatts to about 2 gigawatts,” Bloomberg reports.

While it was previously reported that Oracle and OpenAI “would be working on a number of massive data center projects together,” including in Texas and the UAE as part of an expansion of the model around the globe, “the implications for Oracle’s bottom line were not yet clear, until this week,” writes RCR Wireless News. “Oracle’s pipeline of committed projects is expected to grow by more than 100 percent in fiscal 2026” and is driven by a pipeline of customers that extends well beyond OpenAI.

For CIOs, the surge in data center build-outs is both “promising and problematic,” according to Network World, which says that while capacity is increasing, the competition to secure it is growing. Generally, “enterprises stand to benefit from more efficient and cost-effective AI infrastructure tailored to specialized AI workloads,” Network World says, even while reporting that procuring capacity “will likely get harder, not easier” in the next 12-24 months.