Microsoft Builds AI Data Center Campus Next to OpenAI in Texas
Microsoft is constructing two new data center buildings and a power plant in Abilene, Texas, positioning itself as a neighbor to OpenAI's massive computing complex in what has become one of the nation's largest artificial intelligence infrastructure hubs.
Data center developer Crusoe announced Friday that it is working with Microsoft on the project. The new facilities will join eight existing buildings at the site-two already completed for OpenAI and Oracle, with six more under construction.
The move reflects how Microsoft and OpenAI, once tightly integrated, are now pursuing separate AI development paths despite their ongoing financial relationship. Microsoft holds a roughly 27% stake in OpenAI and was once its exclusive cloud provider.
Scale and Power Requirements
The Microsoft project will include a 900-megawatt power plant, larger than the existing 350-megawatt facility serving the OpenAI-Oracle campus. The two new Microsoft buildings are expected to supply 540 megawatts of computing capacity.
Combined, the Abilene site will reach 2.1 gigawatts of total capacity across 10 buildings. The complex sits on what was once mesquite shrubland in West Texas.
Crusoe originally designed the site to mine cryptocurrency before pivoting to AI infrastructure after ChatGPT's release sparked demand for massive computing resources.
OpenAI's Broader Strategy
OpenAI announced earlier this month that it was declining to expand its Abilene project further, despite calling it "one of the largest AI data center campuses in the United States."
Sachin Katti, OpenAI's head of compute infrastructure, said the company decided to place additional capacity in other locations instead. OpenAI is developing more than half a dozen sites across the United States, including a facility in Wisconsin with Oracle.
Power and Environmental Questions
The data centers primarily draw power from the regional grid, which includes wind farms, though both on-site gas plants serve as backup sources. OpenAI CEO Sam Altman acknowledged during a visit to Abilene last year that the facility burns gas to operate.
AI infrastructure's power demands have complicated major tech companies' climate commitments. The burning of gas, oil, and coal to generate electricity for data centers drives significant greenhouse gas emissions.
For construction and real estate professionals tracking infrastructure development, the Abilene project demonstrates the scale of investment reshaping Texas's industrial landscape. Learn more about AI for Real Estate & Construction and how the industry is adapting to these large-scale projects.
Your membership also unlocks:
