Crusoe has announced that it will build a 900 megawatt AI data centre campus in Abilene in Texas, to support workloads for Microsoft, expanding its total planned capacity in the region to 2.1 gigawatts.
The new campus will include two buildings and an on-site power plant. Construction work has started, and the first building is expected to be operational by mid-2027, the company said.
The data centre project was originally being developed for Oracle and OpenAI, according to Bloomberg.
“As customer demand for AI continues to grow, Microsoft is focused on ensuring access to reliable and responsible infrastructure at scale,” said Noelle Walsh, President of Cloud Operations and Innovation at Microsoft.
The project will add to Crusoe’s existing campus in Abilene, where two 100 MW buildings were completed in under a year. A second phase, expanding the site to 1.2 GW across eight buildings, is expected to be completed by the end of this year.
“Crusoe is building a new AI factory campus in Abilene, purpose-built for the demands of next-generation AI,” said Chase Lochmiller, Co-founder and CEO of Crusoe. “By integrating 900 megawatts of new on-site power generation, we will continue building the industrial foundation for American AI.”
The company said the new site will use a behind-the-meter power system supported by battery storage to improve reliability. Each building is designed to support 336 MW of IT load for high-density GPU systems. The campus will also use closed-loop liquid cooling systems.
Local officials said the expansion is expected to add jobs and increase tax revenue.
Jodey Arrington, US Representative from the 19th Congressional District of Texas, said the expansion reflects growing investment in AI infrastructure in West Texas.
“This major expansion of the campus in Abilene by Crusoe and Microsoft is a testament to the hardworking people and pioneering spirit of the Big Country,” he said.
Meanwhile, Microsoft has slowed down hiring in some parts of its business, especially in cloud and sales teams, according to a report by The Information. This is not a complete hiring stop, but a selective pause, with managers in certain divisions being asked to limit new hires.
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