Oracle Ramps Up AI Data Center Push With $50B CapEx Plan
Terrill Dicki Jan 26, 2026 16:54
Oracle outlines 2026 AI infrastructure expansion across Texas, New Mexico, Wisconsin, and Michigan with commitments to local power and hiring.
Oracle is doubling down on AI infrastructure with an aggressive 2026 expansion plan that spans multiple U.S. states and carries a reported $50 billion capital expenditure commitment to support cloud and AI buildout.
The enterprise software giant announced January 26 that it has AI infrastructure projects underway in partnership with OpenAI at two Texas campuses, plus sites in New Mexico, Wisconsin, and Michigan. Specific communities include Abilene, Shackelford County, Doña Ana County, Port Washington, and Saline Township.
Energy and Water: Oracle's Infrastructure Approach
What separates this expansion from typical data center rollouts? Oracle claims it's footing the bill for energy infrastructure rather than passing costs to local ratepayers. The company says it's funding on-site transmission lines, battery storage, and dedicated substations at locations where grid sharing occurs.
On the cooling front, Oracle states its facilities now use closed-loop non-evaporative systems. Translation: water consumption comparable to a standard office building rather than the heavy draw typical of older data center designs.
Jobs and Local Impact
The employment numbers are substantial. Oracle projects tens of thousands of construction jobs across its developing sites, with thousands of permanent positions once operational. The company's rough math: a 1-gigawatt facility requires over 1,000 permanent employees.
This hiring push comes as Oracle expands its AI capabilities globally. The same week, the company joined a Singapore initiative supporting AI compute adoption and deployed edge cloud infrastructure aboard a Royal Navy flagship.
Market Context
Oracle stock traded at $178.18 as of January 22, up 2.47% over 24 hours. The infrastructure spending aligns with CEO Larry Ellison's stated 2026 strategy of enabling enterprises to leverage private data for AI reasoning and inference. Oracle has been embedding AI agents across its Fusion Cloud suite while pursuing partnerships with NVIDIA for high-performance AI solutions.
The $50 billion CapEx figure represents a significant acceleration from previous spending levels, signaling Oracle's bet that enterprise AI demand will justify massive upfront infrastructure investment. Whether these community-focused commitments translate to smoother permitting and local support remains the key execution question heading into 2026.
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