Microsoft will build two new AI data centers in Abilene, Texas, taking over a project that OpenAI declined to pursue earlier this month. The move makes the two companies neighbors at what will become one of the nation's largest AI computing complexes.
Data center developer Crusoe announced Friday it is working with Microsoft to construct two "AI factory" buildings and an on-site power plant adjacent to Crusoe's existing campus for OpenAI and Oracle.
Microsoft's expansion brings the total number of data center buildings at the Abilene site to 10, expected to supply 2.1 gigawatts of computing capacity. The project was originally planned as a cryptocurrency mining facility before developers pivoted following ChatGPT's launch and the subsequent AI boom.
The site now represents a shift in the relationship between Microsoft and OpenAI, which began as exclusive cloud partners but are increasingly pursuing separate AI infrastructure strategies.
Microsoft maintains a roughly 27% stake in OpenAI but has watched its former partner diversify its cloud relationships. OpenAI dropped plans for further Abilene expansion earlier this month, choosing instead to distribute additional capacity across more than half a dozen other U.S. locations, including a Wisconsin site built with Oracle.
"Our flagship Stargate site is one of the largest AI data center campuses in the United States," said Sachin Katti, OpenAI's head of compute infrastructure, in a social media post. "We considered expanding it further, but ultimately chose to put that additional capacity in other locations."
The new power plant attached to Microsoft's project will generate 900 megawatts, larger than the existing 350-megawatt gas-fired plant serving OpenAI and Oracle's operations. Crusoe CEO Chase Lochmiller said the facility will "continue building the industrial foundation for American AI at a velocity the industry has never seen."
OpenAI's Stargate initiative gained national attention last year when President Donald Trump announced it shortly after his inauguration as part of what he called a "resounding declaration of confidence in America's potential."
The massive Texas complex has already completed two buildings for OpenAI and Oracle, with six more scheduled for completion by year-end. The AI infrastructure race continues complicating tech companies' environmental commitments.
"We're burning gas to run this data center," OpenAI CEO Sam Altman acknowledged during a visit to Abilene last year, while expressing hope that future Stargate development would incorporate more diverse power sources.
