Oracle is investing heavily in its AI-focused cloud business, committing billions of dollars to build large-scale data centers, including a new facility in West Texas that will reportedly cost more than $1 billion annually to operate.
According to Bloomberg, citing unnamed sources, Oracle plans to run the site on gas generators rather than wait for grid connections, which can take years to secure for projects requiring high levels of power.
The decision highlights the company’s urgency to scale its cloud infrastructure as demand for artificial intelligence computing accelerates.
Founded in 1977 and historically known for its database software, Oracle has in recent years pivoted toward cloud services, with a particular focus on AI. The company has secured high-profile partnerships, including managing U.S. user data for TikTok, powering Elon Musk’s xAI venture from Utah, and supporting Nvidia with large-scale chip clusters.
In January, Oracle signed what Bloomberg described as the largest cloud contract to date with OpenAI for the Stargate project, involving plans for up to 4.5 gigawatts of computing power.
The new Shackelford County facility, being developed by Vantage Data Centers, is expected to have a capacity of 1.4 gigawatts, placing it among the largest data centers globally.
While the project underscores Oracle’s ambition to become a leading provider of AI-focused cloud services, the reliance on gas-powered generation raises questions about environmental impacts and the sustainability of its rapid expansion.