Oracle and OpenAI confirm Stargate Phase 2 — Abilene, Texas campus expansion to 4.5GW total capacity, 2027 first-power timeline, Microsoft retains primary capacity through 2026
Oracle and OpenAI confirmed Stargate Phase 2 on May 28: the Abilene, Texas campus will expand to 4.5GW total capacity with first-power for the expansion targeted in 2027. Microsoft retains primary capacity allocation through 2026 under the existing Azure-OpenAI commitment; the Phase 2 capacity is uncommitted and available to OpenAI for the agent-platform-and-frontier-training workloads that have driven the procurement push. The buildout extends the multi-state compute corridor strategy that the Stargate joint venture has executed since the late-2024 announcement.
The capacity scale is the substantive piece. The original Stargate Phase 1 Abilene buildout — first announced in late 2024 and brought to partial first-power in early 2026 — committed 1.2GW across the initial three data hall complexes. Phase 2 quadruples the capacity to 4.5GW total, with the expansion structured as four additional hall complexes on the same 875-acre Abilene site. The 2027 first-power timeline is consistent with the broader Stargate joint-venture roadmap; the $40B+ capital commitment for Phase 2 is the largest single AI-compute buildout disclosure of the year, and includes contributions from Oracle, OpenAI, SoftBank, and the various sovereign and private equity capital partners that the joint venture has assembled.
The competitive-procurement context is the OpenAI compute strategy. GPT-5.2's release the same day and the ChatGPT Agent Mode priority tier are the workload-side justification for the procurement scale-up. OpenAI's compute-allocation strategy through 2027 splits between the Azure primary commitment (existing through 2026 with extension options), the Oracle Stargate buildout (Phase 1 partial first-power 2026, Phase 2 first-power 2027), and a smaller portfolio of CoreWeave and Lambda allocations. The Phase 2 confirmation is the supply commitment that lets OpenAI plan the agent-platform and frontier-training trajectory through 2028 with explicit capacity certainty rather than market-rate risk.
Oracle — Stargate Phase 2 Abilene Texas expansion May 28 2026 → · OpenAI — Stargate compute corridor Phase 2 confirmation → · WSJ — Stargate Phase 2 4.5GW Abilene Texas 2027 timeline →