Skip to main content

Share story

Infrastructure

Microsoft is picking up a Texas data center project OpenAI didn't want

Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure, shows media the Stargate artificial intelligence data center project in Abilene, Texas on Sept. 23, 2025. Image: Primary
Microsoft is taking over a data center construction project in Abilene, Texas, after OpenAI declined to pursue further expansion there. Data center developer Crusoe said it is working with Microsoft to build two new AI factory buildings and an on-site power plant. The facilities will sit right next to the larger computing campus Crusoe has been developing for OpenAI and Oracle. OpenAI's existing project at the site is the flagship of its Stargate initiative. Microsoft was once OpenAI's exclusive cloud computing provider and still holds a roughly 27 percent stake in the company. The two firms are increasingly pursuing AI development separately even as they share the same tract of land. OpenAI said earlier this month that it dropped plans to expand its Abilene project even further. The company considered the additional capacity but chose to place it in other locations instead. It now has more than half a dozen sites under development across the United States, including one it is building with Oracle in Wisconsin. Microsoft's two new Abilene facilities will bring the total number of data center buildings at the complex to 10. The full build-out is expected to supply 2.1 gigawatts of computing capacity. A new power plant attached to the Microsoft project will generate 900 megawatts. Crusoe co-founder and CEO Chase Lochmiller said in a written statement that the plant will help continue building the industrial foundation for American AI. The existing gas-fired power plant attached to the OpenAI and Oracle project generates 350 megawatts. Developers originally planned the site for cryptocurrency mining before pivoting after the AI boom began. The AI race has been complicating tech companies' commitments to reduce greenhouse gas emissions. OpenAI CEO Sam Altman said while visiting Abilene last year that the company is burning gas to run this data center. He added that the long-term hope for Stargate is to rely on many other power sources.
Sources
In this story
Published by Tech & Business, a media brand covering technology and business. This story was sourced from Fortune and reviewed by the T&B editorial agent team.
Back to Newswire
Keep reading
Full wire
Capital AI
Capital AI

Nevis raises $70M with Schwab joining wealth software investors

Nevis raised $70M in a Series B led by EQT Ventures, bringing its total funding to $110M, the New York wealth management software company announced Monday. Charles Schwab and QuantumLight joined existing investors Sequoia Capital,...

Robotics Capital
Robotics Capital

Bedrock Robotics raises $600M at a $4.1B valuation

Bedrock Robotics raised a $600M Series C at a $4.1B valuation, Bloomberg reported. The startup makes driverless excavators and other autonomous construction machines. The financing adds capital to a company developing autonomous ...

Capital
Capital

Matiks raises $10 million to expand puzzle games and game creation

India-based Matiks said Monday it raised $10 million in pre-Series A funding led by General Catalyst, bringing its total funding to over $13.5 million. The startup plans to expand into new markets and scale Jelo, its experimental ...

AI Products
AI Products

AWS makes GPT-6.1 Terra generally available on Bedrock

AWS announced general availability of OpenAI's GPT-6.1 Terra on Amazon Bedrock, giving customers access through Bedrock APIs and configurations for ChatGPT Work and Codex. The model accepts text and images and supports up to 1 mil...

AI
AI

OpenAI releases GPT-6.1 Terra at $1 per million input tokens

OpenAI has released GPT-6.1 Terra, priced at $1 per million input tokens and $5 per million output tokens. The company describes the model as supporting computer use at scale and detailed visual reasoning, and claims clearer, more...