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Microsoft takes over a Texas AI data center expansion after OpenAI backs away

Microsoft will add two AI factory buildings and a 900 MW power plant to expand Abilene's AI data center campus to 2.1 gigawatts of computing capacity.

  • On Friday, data center developer Crusoe announced it is working with Microsoft to build two new "AI factory" buildings and an on-site power plant in Abilene, Texas, adjacent to an existing computing campus.
  • Microsoft is taking over the project after OpenAI declined to pursue it earlier this month, marking a shift as the two companies increasingly develop AI separately despite remaining neighbors on the same tract of land.
  • The expansion adds 900 megawatts of power generation and two data halls, bringing total site capacity to 2.1 gigawatts across 10 facilities expected to supply computing power for artificial intelligence infrastructure.
  • Currently in the "land-clearing and site preparation" phase, Crusoe CEO Chase Lochmiller said the project will "continue building the industrial foundation for American AI at a velocity the industry has never seen."
  • Crusoe does not anticipate the new facilities will be operational until the middle of next year, while the firm completes six additional buildings for OpenAI and Oracle due by year-end.
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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.

·United States
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The Manila Times broke the news in Manila, Philippines (the) on Friday, March 27, 2026.
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