Oracle-Backed AI Data Center in Texas Set to Become World’s Largest

A groundbreaking AI data center is rising in Abilene, Texas, and may become the world’s largest, according to UBS Global Research. The 826-acre "Lancium Clean Campus" is being developed by Crusoe Energy Systems and leased to Oracle (NYSE:ORCL) to support OpenAI's expanding compute needs.

The project will house up to 400,000 Nvidia (NASDAQ:NVDA) GPUs across eight buildings, drawing 1.2 gigawatts of power once fully operational. UBS analysts, who visited the site in March, reported over 2,200 workers on-site. The first two buildings—supporting 100,000 GPUs and 200 megawatts—are expected to be activated by late 2025, with a full ramp-up by 2026.

Despite transformer issues and labor shortages, the project remains on schedule. Analysts estimate Oracle could generate over $2 billion in annual revenue from this initial phase alone. Although the site is often called “Stargate 1”—referencing a $500 billion U.S. AI infrastructure initiative with OpenAI and SoftBank (TYO:9984)—UBS confirms current funding stems from a separate JV involving Crusoe, Blue Owl Capital, and JPMorgan.

Crusoe, once focused on bitcoin mining, now builds vertically integrated AI data centers. Contractors include DPR Construction, Rosendin Electric, and Brandt Construction. Lancium, the original developer, is still involved. The site’s low-latency needs make it better suited for AI model training than inference, though infrastructure remains flexible.

Power equipment procurement remains a bottleneck, with high-voltage transformers facing delays. Still, contractors are confident about meeting milestones. UBS estimates Nvidia could see up to $20 billion in GPU sales linked to the Abilene site, with total infrastructure demand reaching $25 billion. Oracle may begin recognizing revenue from the project as early as Q2 of fiscal 2026.