Microsoft Claims 900 MW Texas Data Center After OpenAI Backs Away From Expansion Plans
9 Sources
[1]
Microsoft lays claim to Crusoe's new 900 MW DC campus
Bitcoin farmer turned bit barn builder Crusoe revealed plans to add 900 megawatts of capacity to its Abilene Texas datacenter campus on Friday to support Microsoft's AI ambitions. The new campus will be located alongside the 1.2 gigawatt facility Crusoe is building for Oracle and OpenAI as part of
[2]
Microsoft to Rent Texas Data Center Dropped by Oracle, OpenAI
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[3]
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
[4]
Microsoft takes over a Texas AI data center expansion after OpenAI backs away
Microsoft is taking over a data center construction project in Texas after OpenAI declined to pursue it, in a move that will make the two companies neighbors at one of the nation's largest complexes for running artificial intelligence. Data center developer Crusoe said Friday it is working with
[5]
Microsoft is picking up a Texas data center project OpenAI didn't want, in a telling sign of how far they've drifted apart | Fortune
Microsoft is taking over a data center construction project in Texas after OpenAI declined to pursue it, in a move that will make the two companies neighbors at one of the nation's largest complexes for running artificial intelligence. Data center developer Crusoe said Friday it is working with
[6]
Microsoft takes over a Texas AI data center expansion after OpenAI backs away
Microsoft is taking over a data center construction project in Texas after OpenAI declined to pursue it, in a move that will make the two companies neighbors at one of the nation's largest complexes for running artificial intelligence. Data center developer Crusoe said Friday it is working with
[7]
Microsoft Takes Over a Texas AI Data Center Expansion After OpenAI Backs Away
Microsoft is taking over a data center construction project in Texas after OpenAI declined to pursue it, in a move that will make the two companies neighbors at one of the nation's largest complexes for running artificial intelligence. Data center developer Crusoe said Friday it is working with
[8]
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
[9]
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
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Microsoft is taking over a massive data center project in Abilene, Texas that OpenAI declined to pursue. The 900-megawatt facility will sit next to OpenAI and Oracle's Stargate campus, marking a shift in the relationship between Microsoft and its former exclusive cloud partner as both companies increasingly pursue AI development separately.
Microsoft Steps Into OpenAI's Abandoned Texas Expansion
Microsoft has agreed to lease a data center project in Abilene, Texas that was originally being developed for Oracle and OpenAI, marking a notable shift in the relationships between these AI powerhouses
2
. Data center developer Crusoe revealed plans on Friday to add 900 megawatts of capacity to support Microsoft AI ambitions at the site, which will be located directly adjacent to the 1.2 gigawatt facility Crusoe is building for OpenAI and Oracle as part of the $500 billion Stargate initiative1
. The deal came together after negotiations between Oracle and OpenAI fell through over financing issues and OpenAI's frequently changing needs2
. Meta Platforms also discussed renting the site before Microsoft ultimately secured the agreement with Crusoe .
Source: Reuters
Massive AI Computing Campus Takes Shape in Abilene, Texas
The new Crusoe data center campus will feature two AI factory buildings along with an on-site power plant capable of delivering 900-megawatt of behind-the-meter energy to the facilities
1
. Each of the bit barns will support 336 megawatts of critical IT load, providing substantial computing power for Microsoft's AI models and services1
. According to Crusoe co-founder and CEO Chase Lochmiller, "By integrating 900 megawatts of new on-site power generation, we will continue building the industrial foundation for American AI - at a velocity the industry has never seen"4
. This expansion will bring the total site capacity to 2.1 gigawatts, transforming what was once vast mesquite shrublands into one of the nation's largest AI computing campus complexes4
.
Source: The Register
OpenAI and Oracle Continue Separate Development
While Microsoft moves forward with its new facilities, Crusoe has already completed two buildings for OpenAI and Oracle, with six more buildings due for completion by the end of 2026
4
. Only about 200 megawatts of the existing 1.2 gigawatt project have actually been powered on, though Crusoe expects the remaining gigawatt to come online throughout 20261
. Sachin Katti, OpenAI's head of compute infrastructure, explained that while the flagship Stargate site is "one of the largest AI data center campuses in the United States," the company ultimately chose to distribute additional capacity across other locations, including a facility being built with Oracle in Wisconsin4
. The existing OpenAI and Oracle project includes a 350-megawatt, gas-fired power plant that Oracle has described as a backup power source, with the data centers primarily drawing from the regional electricity grid5
.
Source: Fortune
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Shifting Dynamics Between Former Partners
The arrangement highlights how Microsoft and OpenAI are increasingly pursuing AI development separately, even as they become neighbors on the same tract of land
4
. Microsoft was once OpenAI's exclusive cloud-computing provider and still holds a roughly 27% stake in the ChatGPT maker, but their relationship has evolved significantly5
. During its most recent quarter, Microsoft inked about $50 billion in commitments to lease server farms under development, marking a reversal from about this time last year when the company paused many data center projects . The world's largest software maker has accelerated data center leasing to meet demand for cloud-computing customers and internal work on artificial intelligence, including generative AI services like Copilot .Energy Concerns and Timeline for AI Infrastructure
Work on the Microsoft campus is currently in the land-clearing and site preparation phase, with Crusoe not anticipating the facilities will be operational until mid-2027
1
. While Crusoe didn't elaborate on how its on-site power plants generate electricity, the timeline suggests natural gas generators or fuel cells are the most likely candidates1
. The AI race has complicated tech companies' commitments to reduce greenhouse gas emissions. OpenAI CEO Sam Altman acknowledged during a visit to Abilene, Texas last year, "We're burning gas to run this data center," though he expressed hope that "in the long trajectory of Stargate" the facilities would rely on many other power sources5
. Technology companies continue pouring billions into data centers to power generative AI services such as ChatGPT and Copilot, which require massive amounts of energy consumption and computing resources3
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