Oracle is stepping up its commitment to the AI-driven cloud sector by investing significantly in new data center construction. One notable site under development in West Texas is projected to cost around $1 billion annually just for operational expenses.
According to Bloomberg, Oracle plans to exceed $1 billion each year to operate this new megasite, using gas generators as a temporary energy solution while waiting for a utility connection.
Gaining approval and infrastructure for the substantial power needed by these vast data centers can take years. Oracle demonstrates its urgency and willingness to invest heavily, seemingly untroubled by potential environmental impacts.
Since its establishment in 1977, Oracle has transformed from a traditional database software provider into a dynamic player in cloud services, especially in the realm of AI-focused computing.
In recent years, Oracle has forged impressive partnerships with major technology companies and gained recognition for its capabilities in AI. A key advantage lies in Oracle’s “bare metal” servers, which promise better speed and security by granting clients dedicated hardware rather than shared resources.
This shift has positioned Oracle as an essential partner for numerous AI firms. Their ascent in the sector took a major leap when TikTok opted to utilize Oracle’s servers. By 2022, all U.S. user traffic from the app ran through Oracle, contributing over $1 billion in annual revenue.
Currently, Oracle supports Elon Musk’s xAI project from a data center in Utah, alongside producing tens of thousands of AI chips for Nvidia. Such lucrative contracts have propelled Oracle founder Larry Ellison to the status of the second-richest person globally, just trailing behind Elon Musk.
Recently, Oracle clinched what Bloomberg describes as the largest single cloud deal in history with OpenAI for their Stargate initiative, a bold collaboration announced at the White House. This agreement involves developing approximately 4.5 gigawatts of data center power, equivalent to the energy that could supply about 750,000 homes. However, tangible progress on this project remains to be seen.
The new gas-powered facility will rise in Shackelford County, Texas, not far from another Oracle data center in Abilene. Developed in collaboration with Vantage Data Centers, this site will hold a staggering 1.4-gigawatt capacity, ranking it among the world’s largest data centers.
Oracle has not provided a comment on this development when reached by Gizmodo.
How much is Oracle investing in its data centers?
Oracle is expected to invest over $1 billion annually to operate its new West Texas data center.
What is Oracle’s strategy for its AI cloud services?
Oracle focuses on providing dedicated servers to clients, enhancing security and speed, thus attracting significant business from major tech companies.
Which companies are partnering with Oracle for AI initiatives?
Oracle has partnered with prominent firms such as OpenAI and Nvidia, bolstering its position in the AI landscape.
What is the significance of the Stargate project with OpenAI?
The Stargate project marks a historic cloud computing deal intended to provide 4.5 gigawatts of data center power, highlighting Oracle’s commitment to the AI sector.
Where is Oracle’s new data center located?
The new gas-powered data center is being built in Shackelford County, Texas, near Oracle’s existing facility in Abilene.
The landscape of cloud computing is evolving rapidly, and Oracle’s moves toward AI signaling are noteworthy. Interested in more insights and updates? Visit Moyens I/O to explore related content.