Oracle will reportedly power a giant data center with gas generators

Oracle, the software giant, is reportedly investing heavily in the development of data centers to support its growing cloud computing and artificial intelligence (AI) operations. According to Bloomberg, Oracle has landed a deal to back operations at OpenAI, providing the AI company with 4.5 gigawatts of computing power, enough to power millions of American homes. However, Oracle's data center projects have raised concerns due to their reliance on gas generators rather than waiting for a utility connection. The company plans to spend over $1 billion a year powering a single data center in Texas using this method, making it one of the largest known sites with a computing power of 1.4 gigawatts. This decision has raised questions about the potential negative impact on the environment and human health, similar to the issues faced by Elon Musk's xAI in Memphis. Other tech giants, such as Google, Microsoft, and Meta, have opted for nuclear power for their data center projects, which also come with their own challenges. Financially, Oracle's aggressive investment in AI data centers has resulted in the company reporting its first negative annual cash flow since 1990. Should the current rates of AI investment turn out to be a bubble, it could have significant consequences for the company.