$3.4 Billion Joint Venture to Build Massive AI Data Center Campus in Texas

Curated by THEOUTPOST

On Wed, 16 Oct, 8:07 AM UTC

2 Sources

Share

Crusoe Energy Systems, Blue Owl Capital, and Primary Digital Infrastructure announce a joint venture to construct a large-scale AI data center campus in Abilene, Texas, capable of housing up to 100,000 GPUs.

$3.4 Billion Joint Venture Announced for Massive AI Data Center

In a significant move that underscores the growing demand for AI infrastructure, Crusoe Energy Systems LLC, Blue Owl Capital Inc., and Primary Digital Infrastructure have announced a $3.4 billion joint venture to construct a state-of-the-art data center campus in Abilene, Texas 12. This ambitious project aims to create one of the world's largest GPU clusters, potentially housing up to 100,000 GPUs, and is set to play a crucial role in advancing AI research and applications.

Project Details and Specifications

The planned development will consist of two facilities, offering a combined floor space of 998,000 square feet. The campus will be supported by a substantial 205 megawatts of power, equivalent to the electricity consumption of tens of thousands of households 1. Crusoe Energy Systems, known for its initial focus on cryptocurrency mining and subsequent expansion into AI cloud services, will be responsible for building and operating the data center campus.

Cutting-Edge Cooling Technology

To manage the immense heat generated by the high-density GPU clusters, Crusoe plans to implement direct-to-chip liquid cooling technology. This advanced method circulates coolant directly through the GPU servers, ensuring optimal performance and energy efficiency 1. Additionally, the company will install conventional air cooling systems for servers that primarily use CPUs, demonstrating a comprehensive approach to thermal management.

Renewable Energy Focus

In line with growing environmental concerns in the tech industry, Crusoe has committed to powering the campus with off-site renewable energy sources, including nearby wind farms 1. The company is also exploring the possibility of constructing an on-site solar power station in the future, further emphasizing its commitment to sustainable data center operations.

Strategic Partnerships and Potential Tenants

While the identity of the primary tenant remains undisclosed, Crusoe has confirmed signing a long-term lease with a "Fortune 100 hyperscale tenant" 1. Industry speculation suggests that Oracle Corporation may be the unnamed tenant, with plans to use the facility to host AI workloads for OpenAI 1. Microsoft, which became OpenAI's exclusive cloud provider earlier this year, is also rumored to be involved in the project.

Implications for AI Infrastructure

This joint venture represents a significant step in addressing the growing demand for specialized AI computing resources. Chase Lochmiller, co-founder and CEO of Crusoe, emphasized the project's potential, stating, "We've designed this data center to enable the largest clusters of GPUs in the world that will drive new breakthroughs in AI" 1.

The scale of this project reflects the increasing investments being made in AI infrastructure. It follows reports of other major deals in the sector, such as Microsoft's rumored multi-billion dollar agreement with CoreWeave Inc. for AI-optimized infrastructure services 1.

As the AI industry continues to evolve rapidly, the development of such large-scale, specialized data centers is likely to play a crucial role in supporting the next generation of AI research and applications. The Abilene campus, with its focus on sustainability and cutting-edge cooling technology, may serve as a model for future AI infrastructure projects worldwide.

Continue Reading
Crusoe Raises $600M in Series D Funding, Launches

Crusoe Raises $600M in Series D Funding, Launches AI-Focused Cloud Platform

Crusoe, an AI infrastructure provider, has secured $600 million in Series D funding, valuing the company at $2.8 billion. The company also announced the general availability of Crusoe Cloud, a high-performance platform tailored for AI and machine learning workloads.

CRN logoBenzinga logoSiliconANGLE logoReuters logo

5 Sources

CRN logoBenzinga logoSiliconANGLE logoReuters logo

5 Sources

OpenAI and Oracle's Stargate Project: 64,000 Nvidia GPUs

OpenAI and Oracle's Stargate Project: 64,000 Nvidia GPUs for Massive AI Data Center in Texas

OpenAI and Oracle are set to launch the first facility of their $100 billion Stargate infrastructure venture, starting with a data center in Abilene, Texas, equipped with 64,000 Nvidia GB200 AI chips by 2026.

The Seattle Times logoEconomic Times logoBenzinga logoBloomberg Business logo

5 Sources

The Seattle Times logoEconomic Times logoBenzinga logoBloomberg Business logo

5 Sources

OpenAI, Oracle, and SoftBank Launch $500B 'Stargate

OpenAI, Oracle, and SoftBank Launch $500B 'Stargate Project' for U.S. AI Infrastructure

OpenAI, Oracle, and SoftBank announce a joint venture called 'The Stargate Project' to invest up to $500 billion in AI infrastructure across the United States, starting with data centers in Texas.

TechCrunch logoTIME logoUSA Today logoSiliconANGLE logo

72 Sources

TechCrunch logoTIME logoUSA Today logoSiliconANGLE logo

72 Sources

Crusoe Energy Secures $500M Investment Led by Peter Thiel's

Crusoe Energy Secures $500M Investment Led by Peter Thiel's Founders Fund for AI Infrastructure Expansion

Crusoe Energy, a data center startup, has raised $500 million in equity investment led by Peter Thiel's Founders Fund. The funding round values the company at $3 billion, highlighting the growing interest in AI infrastructure and sustainable computing solutions.

Benzinga logoFinancial Times News logo

2 Sources

Benzinga logoFinancial Times News logo

2 Sources

Nvidia Invests $160 Million in Applied Digital to Boost GPU

Nvidia Invests $160 Million in Applied Digital to Boost GPU Data Center Demand

Nvidia has made a significant $160 million investment in Applied Digital, a data center builder and cloud startup. This strategic move aims to increase demand for Nvidia's GPUs in data centers and expand its presence in the AI infrastructure market.

TechRadar logoSiliconANGLE logotheregister.com logoThe Information logo

6 Sources

TechRadar logoSiliconANGLE logotheregister.com logoThe Information logo

6 Sources

TheOutpost.ai

Your one-stop AI hub

The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.

© 2025 TheOutpost.AI All rights reserved