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Microsoft Reported to Lease 700-Megawatt Abilene Data Center Next to OracleOpenAI Campus

The unconfirmed lease signals intensifying competition for scarce AI-ready power in West Texas.

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes

Overview

  • Bloomberg reported Tuesday that Microsoft agreed to lease a roughly 700 megawatt data center in Abilene that Oracle and OpenAI had considered.
  • The facility is next to Stargate, the OracleOpenAI campus that anchors a growing West Texas AI hub.
  • Microsoft’s deal is with developer Crusoe after Oracle and OpenAI ended talks to take the site, according to the report.
  • The parties have not confirmed the lease, as Microsoft told Reuters it had nothing to share, Oracle and Crusoe did not comment, and a source said OpenAI’s Oracle agreements remain in place.
  • Oracle has pushed back on earlier reports of Abilene delays, and the scale — enough power to run tens of thousands of AI chips — shows why companies are scrambling for capacity.