Oracle-OpenAI Data Center Project Delayed Until 2028

Construction timelines for Oracle's massive data center project supporting OpenAI have stretched by a full year, pushing completion to 2028 according to internal sources. The delay comes as the tech industry grapples with widespread shortages of skilled labor and specialized construction materials.

Market Reaction Was Swift

Investors didn't wait for official confirmation - Oracle shares dropped as much as 6.5% following the news before closing down 5.3% at $188.26. The selloff reflects concerns about potential ripple effects across OpenAI's development roadmap, which relies heavily on these planned computing resources.

Despite the setback, the scale of this undertaking remains staggering. When completed, the US-based facilities will form one of the planet's largest concentrations of AI computing power. Oracle is currently fulfilling a $300 billion multi-year contract to provide the infrastructure backbone for OpenAI's model training and operations.

Progress Amid Delays

"We've set ambitious but achievable targets," Oracle co-CEO Clay Magouyrk recently told analysts, pointing to successful deployment of over 96,000 NVIDIA chips at their Texas flagship site. These cutting-edge processors already support portions of OpenAI's workload while awaiting completion of dedicated facilities.

The Abilene location represents just one node in Oracle's global expansion strategy. Company executives emphasize that while certain projects face delays, their overall capacity roadmap remains intact. Construction crews continue working around logistical challenges, prioritizing delivery of existing commitments.

Neither Oracle nor OpenAI would comment specifically on the revised timeline when contacted by reporters. Industry analysts suggest such delays have become increasingly common in large-scale tech infrastructure projects during recent supply chain disruptions.

Key Points:

• Revised Timeline: Completion pushed from 2027 to 2028
• Market Impact: Oracle shares fell nearly 6% on delay news
• Progress Continues: Over 96K NVIDIA chips already deployed
• Strategic Importance: Part of $300B OpenAI infrastructure deal