Microsoft Secures 700-Megawatt Texas Data Center After Oracle and OpenAI Walk Away
4 Sources
4 Sources
[1]
Microsoft to Rent Texas Data Center Dropped by Oracle, OpenAI
Ask Mark Gurman Anything About Apple Ask Mark Gurman Anything About Apple Ask Mark Gurman Anything About Apple From its latest devices, to an AI comeback and the future after Tim Cook, join the live conversation on Thursday, March 26 at 11 a.m. EDT. From its latest devices, to an AI comeback and the future after Tim Cook, join the live conversation on Thursday, March 26 at 11 a.m. EDT. From its latest devices, to an AI comeback and the future after Tim Cook, join the live conversation on Thursday, March 26 at 11 a.m. EDT. Click to listen Click to listen Click to listen Click to listen Microsoft Corp. has agreed to rent a data center project in Texas that was originally being developed for Oracle Corp. and OpenAI, according to people familiar with the situation. Representing about 700 megawatts of capacity, the site in Abilene is adjacent to Oracle's and OpenAI's flagship Stargate campus. Microsoft struck the deal with developer Crusoe after the two companies walked away from talks to occupy the site, said the people, who were granted anonymity to discuss a private matter. The world's largest software maker has stepped up data-center leasing in an attempt to meet demand for its cloud-computing customers as well as for internal work on artificial intelligence. During its most recent quarter, Microsoft inked about $50 billion in commitments to lease server farms under development. The flurry of activity marks a reversal from about this time last year, when the company hit pause on many data center projects. Earlier this month, Bloomberg reported that negotiations for Oracle and OpenAI to occupy the facilities on the Abilene site had dragged over financing and OpenAI's often-changing needs before falling apart. OpenAI said at the time that it opted to use alternative data centers. Meta Platforms Inc. also discussed renting the site, and The Information earlier reported that Microsoft, too, was in talks to lease it. Microsoft, Crusoe and Meta all declined to comment. The Abilene site is among the highest-profile of the AI era, and will now feature two rivals -- Microsoft and Oracle -- on the same greater campus. Oracle has been rapidly filling buildings there with servers, which are used by OpenAI to train and deploy its products.
[2]
Microsoft to rent Texas data center dropped by Oracle and OpenAI, Bloomberg News reports
March 24 (Reuters) - Microsoft has agreed to rent a data center project in Texas that was originally being developed for Oracle and OpenAI, Bloomberg News reported on Tuesday, citing people familiar with the situation. The Abilene site, which accounts for roughly 700 megawatts of capacity, sits next to Oracle (ORCL.N), opens new tab and OpenAI's flagship Stargate campus, the report said. Microsoft (MSFT.O), opens new tab struck an agreement with developer Crusoe after both Oracle and OpenAI walked away from talks to occupy the site, according to the report. A source familiar with the matter, however, told Reuters that there are no changes to OpenAI's existing agreements with Oracle. A spokesperson for Microsoft said it had nothing to share, while Oracle and Crusoe did not immediately respond to Reuters' requests for comment. Earlier this month, Bloomberg News reported that Oracle and OpenAI had abandoned plans to expand an AI data center in Texas after negotiations dragged over financing and OpenAI's changing needs. Oracle later said the claims that planned capacity at the Abilene site is delayed were inaccurate. Technology companies have been pouring billions of dollars into data centers to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power. Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar Our Standards: The Thomson Reuters Trust Principles., opens new tab
[3]
Microsoft to rent Texas data center dropped by Oracle and OpenAI: Report
Microsoft has agreed to rent a data center project in Texas that was originally being developed for Oracle and OpenAI, Bloomberg News reported on Tuesday, citing people familiar with the situation. Microsoft has agreed to rent a data center project in Texas that was originally being developed for Oracle and OpenAI, Bloomberg News reported on Tuesday, citing people familiar with the situation. The Abilene site, which accounts for roughly 700 megawatts of capacity, sits next to Oracle and OpenAI's flagship Stargate campus, the report said. Microsoft struck an agreement with developer Crusoe after both Oracle and OpenAI walked away from talks to occupy the site, according to the report. Oracle, Microsoft, OpenAI and Crusoe did not immediately respond to Reuters' requests for comment. Earlier this month, Bloomberg News reported that Oracle and OpenAI had abandoned plans to expand an AI data center in Texas after negotiations dragged over financing and OpenAI's changing needs. Oracle later said the claims that planned capacity at the Abilene site is delayed were inaccurate. Technology companies have been pouring billions of dollars into data centers to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power.
[4]
Microsoft to rent Texas data center dropped by Oracle and OpenAI, Bloomberg News reports
March 24 (Reuters) - Microsoft has agreed to rent a data center project in Texas that was originally being developed for Oracle and OpenAI, Bloomberg News reported on Tuesday, citing people familiar with the situation. The Abilene site, which accounts for roughly 700 megawatts of capacity, sits next to Oracle and OpenAI's flagship Stargate campus, the report said. Microsoft struck an agreement with developer Crusoe after both Oracle and OpenAI walked away from talks to occupy the site, according to the report. Oracle, Microsoft, OpenAI and Crusoe did not immediately respond to Reuters' requests for comment. Earlier this month, Bloomberg News reported that Oracle and OpenAI had abandoned plans to expand an AI data center in Texas after negotiations dragged over financing and OpenAI's changing needs. Oracle later said the claims that planned capacity at the Abilene site is delayed were inaccurate. Technology companies have been pouring billions of dollars into data centers to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power. (Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)
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Microsoft has agreed to lease a massive data center project in Abilene, Texas, originally planned for Oracle and OpenAI. The 700-megawatt facility sits adjacent to the Stargate campus and represents Microsoft's aggressive push to meet surging demand for AI infrastructure and cloud-computing services.
Microsoft Steps In After Oracle and OpenAI Negotiations Collapse
Microsoft has secured a lease agreement for a large data center project in Abilene, Texas, that was originally being developed for Oracle and OpenAI
1
. The facility, representing approximately 700 megawatts of power capacity, sits adjacent to Oracle and OpenAI's flagship Stargate campus2
. Microsoft struck the deal with developer Crusoe after both companies walked away from negotiations to occupy the site, according to people familiar with the situation3
.
Source: Reuters
Escalating Demand Drives Aggressive AI Infrastructure Expansion
The acquisition marks a significant shift in Microsoft's approach to AI infrastructure and cloud-computing capabilities. During its most recent quarter, Microsoft inked approximately $50 billion in commitments to lease server farms under development
1
. This flurry of leasing activity represents a dramatic reversal from about a year ago, when the company hit pause on many data center projects. The world's largest software maker has stepped up data center leasing in an attempt to meet escalating demand for its cloud-computing customers as well as for internal work on artificial intelligence1
.
Source: Bloomberg
Why Oracle and OpenAI Abandoned the Texas Data Center
Earlier this month, Bloomberg reported that negotiations for Oracle and OpenAI to occupy the facilities on the Abilene site had dragged over financing and OpenAI's often-changing needs before falling apart
1
. OpenAI said at the time that it opted to use alternative data centers. However, a source familiar with the matter told Reuters that there are no changes to OpenAI's existing agreements with Oracle2
. Oracle later disputed claims that planned capacity at the Abilene site is delayed, calling them inaccurate4
.Related Stories
Rivals Share Campus as AI Competition Intensifies
The Abilene site is among the highest-profile of the AI era and will now feature two rivals—Microsoft and Oracle—on the same greater campus
1
. Oracle has been rapidly filling buildings there with servers, which are used by OpenAI to train and deploy its products. Meta Platforms also discussed renting the site, though those talks did not materialize1
. Technology companies have been pouring billions of dollars into data centers to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power3
. The proximity of competing AI infrastructure on the same campus underscores the intense race among tech giants to secure the resources necessary for training and deploying advanced AI models.References
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