Microsoft Leases Texas Data Center Originally Developed for Oracle and OpenAI

Microsoft has agreed to lease a data center in Abilene, Texas, initially intended for Oracle and OpenAI. The facility, providing approximately 700 megawatts of capacity, is adjacent to Oracle and OpenAI's Stargate campus. The agreement with developer Crusoe follows Oracle and OpenAI's withdrawal from negotiations due to stalled financing and shifting needs. Microsoft aims to expand its computing infrastructure amidst a growing demand for data centers to support AI services.

Published Mar 25, 2026

Microsoft has finalized a lease for a data center in Abilene, Texas, which was initially planned for Oracle and OpenAI. This facility has around 700 megawatts of capacity and is located next to the Stargate campus, which serves as the main AI infrastructure for Oracle and OpenAI.

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The agreement with developer Crusoe comes after Oracle and OpenAI ceased negotiations due to issues related to financing and changing requirements. Despite the withdrawal, Oracle has disputed claims of delays at the site. This move is part of Microsoft's strategy to expand its computing infrastructure amidst a surge in demand for AI capabilities.