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

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

By AP
Publication Date: 2026-03-30 03:31:00

Data centre developer Crusoe said Friday it is working with Microsoft to build two new “AI factory” buildings and an on-site power plant in Abilene, Texas [File]
| Photo Credit: AP

Microsoft is taking over a data centre construction project in Texas after OpenAI declined to pursue it, in a move that will make the two companies neighbours at one of the nation’s largest complexes for running artificial intelligence.

Data centre developer Crusoe said Friday it is working with Microsoft to build two new “AI factory” buildings and an on-site power plant in Abilene, Texas, right next to where Crusoe has been building an even larger computing campus for OpenAI and Oracle.

OpenAI’s existing project, the flagship of a broader initiative called Stargate, is so massive that U.S. President Donald Trump was the first to officially announce it just after his inauguration last year to…