New Technology / Data Centers
Impact of Geopolitical Tensions on Energy and Technology
Track data center expansion, compute infrastructure, energy demand and capacity trends supporting cloud and AI growth.
Source material: Oracle, OpenAI End Plans to Expand Flagship Data Center | Bloomberg Tech 3/9/2026
Key insights
- Oracle and OpenAI have scrapped plans to expand a Texas data center, maintaining their AI strategy
- The Middle East conflict is causing oil prices to surge, with Brent crude reaching $120 a barrel
- President Trump threatens to escalate the conflict, indicating a continuation of hard-line policies against Iran
- Iran claims it can sustain a high-intensity conflict for six months, raising concerns about prolonged instability
- G7 Finance Ministers discussed a coordinated release of strategic reserves, but no agreement has been reached
- The White House faces pressure over rising gasoline prices, considering a gas tax holiday
Perspectives
Analysis of the impact of geopolitical tensions on energy and technology sectors.
Proponents of Energy Infrastructure Investment
- Highlight the need for domestic energy investment to mitigate geopolitical risks
- Argue that nuclear energy provides a reliable, zero-carbon power source
- Emphasize the importance of regulatory reforms to expedite energy project development
Critics of Current Energy Strategies
- Question the effectiveness of short-term solutions to long-term energy security issues
- Critique the reliance on tax credits without addressing systemic regulatory challenges
Neutral / Shared
- Acknowledge the ongoing conflicts impact on oil prices and market volatility
- Recognize the complexity of energy infrastructure projects amid geopolitical tensions
- Note the evolving landscape of AI applications in response to market demands
Metrics
market_loss
$6 trillion USD
Asset classes lost since the beginning of the conflict
Significant market losses can affect investor confidence and economic growth.
Asset classes that have lost about six trillion since the beginning of the conflict.
oil_price
$100 USD
Current oil price
A sustained high oil price can strain consumer budgets and impact economic recovery.
Oil surges past $100.
valuation
$14.6 billion USD
Valuation of End Scale
High valuations can attract further investment and innovation in the sector.
Valuing the UK-based AI data center developer at $14.6 billion.
investment
$80 billion USD
nuclear deal
This investment indicates a significant commitment to nuclear energy development.
$80 billion deal for nuclear
operational_time
90 to 95 percent %
nuclear energy reliability
High reliability of nuclear energy supports its role as a stable energy source.
producing electrons for 90 to 95 percent of the time
construction_time
two to four years
pre-development phase for nuclear projects
Understanding the timeline is crucial for planning energy infrastructure.
you're looking at roughly two to four years for pre-development
build_time
five to eight years
nuclear plant construction
Long build times can delay energy availability and impact energy security.
roughly a five to eight-year build cycle
capacity
4.5 gigawatts
total capacity agreement between Oracle and OpenAI
This capacity is crucial for supporting AI infrastructure demands.
Oracle's broader agreement to develop 4.5 gigawatts of data center capacity for OpenAI remains on track.
Key entities
Timeline highlights
00:00–05:00
Oracle and OpenAI have decided not to expand a Texas data center, while oil prices have surged due to ongoing Middle East conflicts. The U.S.
- Oracle and OpenAI have scrapped plans to expand a Texas data center, maintaining their AI strategy
- The Middle East conflict is causing oil prices to surge, with Brent crude reaching $120 a barrel
- President Trump threatens to escalate the conflict, indicating a continuation of hard-line policies against Iran
- Iran claims it can sustain a high-intensity conflict for six months, raising concerns about prolonged instability
- G7 Finance Ministers discussed a coordinated release of strategic reserves, but no agreement has been reached
- The White House faces pressure over rising gasoline prices, considering a gas tax holiday
05:00–10:00
Geopolitical tensions are affecting domestic energy prices, highlighting the importance of investing in energy infrastructure. The U.S.
- Geopolitical tensions are impacting domestic energy prices, emphasizing the need for investment in energy infrastructure
- Clients are encouraged to invest in clean tech and renewable stocks, reflecting a shift towards reliable energy sources
- Nuclear energy is gaining attention for its zero-carbon attributes and reliability, providing power 90 to 95 percent of the time
- Developing new nuclear infrastructure in the U.S. requires a lengthy process, complicating timely project execution
- Sensible regulations are essential for the development of nuclear energy projects in the U.S
- The U.S. administration is extending tax credits to support the nuclear industry
10:00–15:00
Oracle and OpenAI have decided not to expand the Stargate data center due to stalled financing negotiations. However, their agreement for 4.5 gigawatts of capacity remains on track.
- Oracle and OpenAI scrapped plans to expand the Stargate data center due to stalled financing negotiations, but their agreement for 4.5 gigawatts of capacity remains on track
15:00–20:00
Oracle and OpenAI have halted plans to expand the Stargate data center in Texas due to financing issues, while their agreement for 4.5 gigawatts of capacity remains intact. Developer Crusoe is looking for a tenant for the shelved expansion, with Meta in discussions to assist.
- Oracle and OpenAI scrapped plans to expand the Stargate data center in Texas due to stalled financing negotiations, but their agreement for 4.5 gigawatts of capacity remains on track
- Developer Crusoe is seeking a tenant for the shelved expansion, with Meta in talks to facilitate discussions
- Concerns about private credit and equity tied up in data center projects may lead investors to reassess commitments in the sector
- The ongoing conflict in the Middle East could impact inflation and costs associated with building data center infrastructure
- Anthropic has sued the US Department of Defense after being labeled a supply chain risk, claiming the governments actions are unprecedented
20:00–25:00
OpenAI is negotiating with the Department of Defense for additional protections amid concerns similar to those raised by Anthropic. The financial implications of these negotiations for both companies remain uncertain, particularly regarding customer retention and talent attrition.
- OpenAI is negotiating with the Department of Defense for additional protections, reflecting concerns similar to those raised by Anthropic. The ongoing conflict and government designations could deter customers from both companies
25:00–30:00
Iran has shifted its military strategy from using ballistic missiles to low-cost Shahed 136 drones, indicating a depletion of its missile stockpile. The U.S.
- Iran is using low-cost Shahed 136 drones, indicating a depletion of its missile stockpile
- Irans strikes have decreased since the war began, suggesting resource constraints
- The U.S. has deployed its version of the Shahed 136 drone, named Lucas, to counter Iranian attacks
- Caitlin Kalinowski resigned from OpenAIs robotics team over concerns about the Pentagon deal
- Sarubris is filing for an IPO to raise about two billion dollars, impacting tech investments
- Tencent is considering investing in Paramounts acquisition of Warner Brothers Discovery, reflecting cautious Chinese investor sentiment