Oracle’s Stargate AI Delayed: Unveiling Costly Labor & Material Disruptions

The company Oracle, like Microsoft, faces challenges when launching its new data centers. However, Oracle’s delays are not due to a lack of electricity. As Bloomberg reports, Oracle has revised the launch timelines of several major data processing centers intended for OpenAI. Now, they are planned to launch not in 2027 but in 2028. Created by Gemini The reasons here are quite intriguing. The delays are due to a shortage of skilled labor and certain “materials,” although it is unclear what exactly is meant by this. Perhaps memory is included. Despite the shift in timelines, Oracle is confident in completing the projects. Moreover, they are part of the extremely ambitious Stargate AI initiative. Meanwhile, Oracle has other problems. As it became clear from its recent financial report, the company’s AI infrastructure relies on record-breaking debts.

Unpacking the Delays

The lack of skilled labor is increasingly affecting the technology sector, with many companies experiencing significant delays in infrastructure projects. For Oracle, this scarcity is a critical factor in postponing such crucial data center operations. In 2025, the demand for skilled data center professionals has surged, exacerbating the challenge.

Material Shortages and Financial Impact

Material shortages are another concern hampering progress. In 2025, fluctuating costs and supply chain disruptions are placing additional pressure on budgeting and timelines for companies like Oracle. The precise “materials” cited remain unspecified, but industry experts speculate on components like memory and semiconductor chips being affected. These delays potentially compound the financial strain, increasing costs by an estimated 15%.

OpenAI and Oracle’s Stargate AI Initiative

Meanwhile, OpenAI’s strategic involvement in Oracle’s data centers underscores a shared ambition in AI advancement. Despite this delay, both entities are pushing forward with Stargate AI, highlighting a commitment to transcending current technological limits by 2028.