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3/31/2026
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Microsoft Takes Over Texas AI Data Center Project After OpenAI Exits

Microsoft Takes Over Texas AI Data Center Project After OpenAI Exits
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Microsoft is taking over a significant artificial intelligence data center construction project in Abilene, Texas, after its close partner OpenAI declined to pursue the development. This strategic move will make the two companies neighbors on the same tract of land at one of the nation’s largest complexes for running AI, a telling sign of how their once-exclusive cloud partnership has evolved and drifted into more independent infrastructure paths. The project, now under Microsoft's control, represents a pivotal development in AI infrastructure expansion. It is being developed by Crusoe, the AI factory company, which announced a new 900-megawatt dedicated AI factory campus to support large-scale AI workloads for Microsoft. The site will include two new buildings and an on-site power plant designed to support grid resilience, which Crusoe CEO Chase Lochmiller stated will 'continue building the industrial foundation for American AI — at a velocity the industry has never seen.' The takeover occurs amid broader concerns, as referenced in multiple reports, about OpenAI's ambitious plans for a huge number of data centers reportedly running into trouble. Furthermore, the project has raised questions regarding the environmental impact of such massive computing facilities, including emissions and the sourcing of regional power. The new 900 MW gas-fired power plant attached to the Microsoft project will be substantially larger than the existing 350-megawatt plant that was previously associated with the OpenAI plan, highlighting the immense scale and energy demands of the modern AI industry.

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Sources

Crusoe Announces New 900 MW AI Factory Campus in Abilene, Texas to Support Microsoft AI Infrastructure - CXO Digitalpulse

www.cxodigitalpulse.com
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ABILENE, TX — Crusoe, the AI factory company, announced the development of a new, dedicated AI factory campus in Abilene, Texas. Supporting large scale AI workloads for Microsoft, the 900 MW site includes two new buildings and an onsite power plant to support grid resilience.

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

fortune.com
50%

The two companies will be neighbors on the same Abilene tract of land, showing how things have changed since Microsoft was once OpenAI's exclusive cloud provider.

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

apnews.com
50%

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.

Making AI Work: Microsoft Takes Control of OpenAI's Texas AI Data Center Project, Strengthening AI Infrastructure, ETEnterpriseai

enterpriseai.economictimes.indiatimes.com
50%

Making AI Work: Microsoft is set to take over a significant AI data center project in Texas previously pursued by OpenAI, marking a pivotal development in AI infrastructure expansion amid concerns over emissions and regional power sources.

Microsoft takes over a Texas AI data center expansion after OpenAI backs away :: WRAL.com

www.wral.com
50%

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.

OpenAI's Obsession With Data Centers Is Running Into Trouble

futurism.com
50%

OpenAI is running into trouble with its plans to build a huge number of data centers to power its AI models.

After OpenAI exits, Microsoft takes over Texas AI data center project

www.chron.com
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Microsoft is taking over a data center construction project in Texas after OpenAI declined to pursue it.

Microsoft takes over a Texas AI data centre expansion after OpenAI backs away - The Hindu

www.thehindu.com
50%

Crusoe co-founder and CEO Chase Lochmiller said in a written statement that a new power plant attached to the Microsoft project will be able to generate 900 megawatts to “continue building the industrial foundation for American AI — at a velocity the industry has never seen.” · That will be larger than the existing 350-megawatt, gas-fired power plant attached to the OpenAI ...

OpenAI Datacentre Project: As OpenAI drops out of datacentre project at Texas, Microsoft moves in; CEO of data center developer Crusoe says: This will be … | - The Times of India

timesofindia.indiatimes.com
50%

During a visit to Abilene last ... long trajectory of Stargate”, the aim is to transition to other power sources. ... The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers ...

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