Background

Stargate is a data-centre joint venture involving OpenAI, SoftBank and Oracle. It is a vehicle for arranging large-scale computing capacity, making its siting and delivery choices relevant to the companies that depend on that capacity.

The venture was announced in January 2025 with a $500bn headline and $100bn committed at launch. By 1 April 2026, its Abilene, Texas site was reported as partly operational, with 1.2 GW of a nominal 10 GW programme.

Stargate matters because it joins technology companies, capital providers and infrastructure operators in one long-term build programme. Its projects expose how power availability, financing and physical security shape where computing capacity can be built.

Key Issues

British grid

Stargate's UK site remains paused

On 23 April, OpenAI paused Stargate's planned Cobalt Park site in North Tyneside. It cited an unfavourable regulatory environment and high energy costs, while other parts of the wider UK AI Growth Zone continued.

On 13 April, OpenAI had also linked its pause in UK data-centre plans to electricity prices roughly four times those in the United States and grid-connection delays of three to eight years. For Stargate, the decision limits a proposed British location rather than its wider capacity programme.

Common Questions

Is OpenAI going public before Stargate is built?

Not in 2026. Bloomberg and Reuters reported on 25 June 2026 that OpenAI is leaning toward delaying its IPO to 2027 rather than accept a lower valuation for an earlier listing, keeping its roughly $1 trillion valuation target private for now.Source: Bloomberg / Reuters

Why did OpenAI cut the Stargate compute target from $1.4 trillion to $600 billion?

OpenAI told investors in May 2026 that it now targets roughly $600 billion in compute spend through 2030, down from the $1.4 trillion Stargate nameplate. The company declined the Crusoe Abilene lease, suspended Cobalt Park and Narvik, lost senior executives, and shifted to treating Stargate as an umbrella for leased rather than owned capacity.Source: Tom's Hardware, investor briefings

Is the Stargate UAE data centre in Abu Dhabi still being built?

Yes. G42 confirmed the first 200 MW phase remains on course for Q3 2026, with over 100,000 cubic metres of concrete poured and 5,000 workers on site, despite Iranian threats targeting the facility in April 2026.Source: Lowdown data-centres briefing

Why did OpenAI pause the Stargate UK data centre at Cobalt Park?

OpenAI cited UK industrial electricity prices running roughly four times US levels and grid-connection delays of three to eight years, versus 18-24 months elsewhere, as the primary drivers of suspending the Cobalt Park, North Tyneside site in April 2026.Source: OpenAI statement, Lowdown data-centres briefing

How much is Oracle cutting to fund Stargate?

Oracle cut between 20,000 and 30,000 employees in March 2026, freeing $8-10 billion annually in salary costs. The savings are being redirected into a $156 billion data centre build-out that overlaps with Stargate.Source: TD Cowen, Oracle

Why did Iran name Stargate AI data centres as military targets?

The IRGC published a targeting video on 1 April 2026 naming Stargate UAE among 18 US tech companies it alleged provided AI targeting infrastructure for strikes on Iran. Oracle's Dubai data centre had already been struck before the video was released.Source: IRGC, AP

Who owns the Stargate AI data centre project?

Stargate is a joint venture between OpenAI, SoftBank, and Oracle. Sam Altman, Masayoshi Son, and Larry Ellison announced it in January 2025 at The White House with a $500 billion headline commitment.

How the World Sees Them

Iran

The IRGC framed Stargate UAE as a military target on the grounds that its AI infrastructure supports US and Israeli strike planning. The claim is contested but the targeting intent is documented.

Gulf states

UAE and Gulf governments have positioned themselves as indispensable to US AI infrastructure. The Abu Dhabi phase is tracking its Q3 2026 deadline despite Iranian threats and the strategic volatility they introduce.

United States

Stargate is the flagship example of US AI infrastructure ambition. The compression from $1.4tn to $600bn and the pivot to leased compute raise questions about whether the private-sector bet will match the political announcement.

United Kingdom

Industrial electricity four times the US rate and multi-year grid delays have cost the UK its Cobalt Park site. Gate 2 reforms offer a partial fix, but compute is already routing elsewhere while London retains the talent.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 24 September 2026. Editorial standards.