The data center is located in Abilene, Texas, as part of the US $500 billion Stargate project, led by leading domestic AI (artificial intelligence) companies, to strengthen the US's position in the artificial intelligence industry in the context of increasingly fierce global competition.
Oracle - the cloud service provider will buy about 400,000 GB200 most powerful chips from Nvidia and lease them to OpenAI, to ensure the operation of the data center.
The data center is expected to be fully operational by mid-2026, and Oracle has agreed to rent the facility for 15 years, according to the Financial Times.
In terms of construction costs, JPMorgan provided the majority of its debt financing through two loans totaling $9.6 billion. Meanwhile, two other units, one of which is the US company Blue Owl Capital, have invested about $5 billion in cash.
The data center will help OpenAI reduce its dependence on Microsoft, its largest sponsor, as the energy demand of the ChatGPT maker has far exceeded the supply that Microsoft can provide.
For Oracle, the data center and Stargate Project offer the company the opportunity to advance its cloud computing capabilities and catch up with market leaders Microsoft, Amazon and Google.
OpenAI, Oracle and Nvidia are also involved in the Stargate project in the Middle East, where a new giant AI data center will be built in the UAE, capable of using more than 100,000 Nvidia chips.
The first phase of the UAE data center will be operational in 2026.
