Microsoft is taking over a major data center construction project in Abilene, Texas, previously eyed by OpenAI, placing both companies in close proximity at a significant AI infrastructure hub. Developer Crusoe announced it will partner with Microsoft to construct two new “AI factory” buildings and a power plant, complementing OpenAI’s existing expansive Stargate project, which initially gained attention due to significant AI investments under President Trump’s administration.
Crusoe has already completed two buildings for OpenAI and Oracle, enhancing computing power for AI technologies like ChatGPT. OpenAI recently decided to drop plans for further expansion at its Abilene site, opting instead for other U.S. locations.
The new facilities will increase the total number of data center buildings to ten, expected to host around 2.1 gigawatts of computing capacity. However, the AI push raises concerns over environmental impacts, as facilities currently rely heavily on natural gas for power.
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