Oracle Stock (ORCL) Punished on Reports Its Scrapping Plans for a Data Center Expansion

FomoAnxiety · 2026-03-06T20:42:12+00:00

Oracle's stock is falling as it cancels plans to expand a Texas data center due to cost-cutting after heavy AI investments. The decision opens the door for Meta to lease the site, with Nvidia facilitating the negotiations.

FomoAnxiety

2026-03-06 20:42:12

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Oracle’s (ORCL) stock is down heading into the market’s close on March 6 after report surfaced that the technology giant is scrapping plans to expand a data center located in Texas.

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Multiple media reports say that Oracle has ended plans to expand their Texas data center site as he company moves to cut costs after heavy spending on artificial intelligence (AI) initiatives over the past year.

Oracle and OpenAI scrapped plans to expand a flagship artificial intelligence data center in Abilene, Texas, after negotiations dragged over financing and OpenAI’s changing needs, according to Bloomberg. The collapsed talks created an opening for Meta Platforms Inc. (NASDAQ:META) to step in and consider leasing the planned expansion site from developer Crusoe.

Nvidia Corp. (NASDAQ:NVDA), the AI chipmaker, helped facilitate Meta’s discussions with the developer, Bloomberg reported. Nvidia paid a $150 million deposit to Crusoe and began helping court Meta as a tenant for the expansion, according to the report.

The 1,000-acre campus being developed by Crusoe in Abilene is part of the Stargate project, which was announced at the White House with President Donald Trump. While several parts of the site are up and running, Oracle and OpenAI elected not to go forward with tentative plans to lease a large expansion.

Oracle and OpenAI are using Nvidia’s AI semiconductors at the Stargate site. With Crusoe seeking a tenant, Nvidia became involved to ensure its products would still fill the expanded data center rather than those of rival Advanced Micro Devices Inc. (NASDAQ:AMD).

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