Microsoft will now add some 900 MW of capacity at its upcoming AI campus in Abilene, Texas. The construction will be carried out by Crusoe, an AI factory developer, and the facility will support large-scale AI workloads for Microsoft.
This development is noteworthy in light of recent news that OpenAI and Oracle had reportedly scrapped expansion plans for their Stargate campus at the same location. Now it appears Microsoft has stepped in to continue digital infrastructure development at the site. The expansion includes two buildings and an on-site power plant, bringing the total projected capacity at the Abilene site to 2.1 GW. Site preparation has begun, with the first building expected online by mid-2027.
“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, Cloud Operations & Innovation at Microsoft. “Crusoe’s Abilene facility reflects the type of large-scale infrastructure that supports next generation AI while contributing long term value to the local community.”
In a press release, Crusoe revealed that the campus is designed to meet the demands of next-generation AI, with ultra-high-density compute, water-efficient cooling, and a dedicated 900 MW on-site power plant. Crusoe’s first Abilene project, two 100 MW buildings, was built and energized in under a year, and a second phase adding six buildings to reach 1.2 GW is scheduled for completion by the end of 2026.
Chase Lochmiller, CEO, Crusoe, said, “Crusoe is building a new AI factory campus in Abilene, purpose-built for the demands of next-generation AI, By integrating 900 MW of new on-site power generation, we will continue building the industrial foundation for American AI – at a velocity the industry has never seen.”
Jodey Arrington, U.S. Representative for Texas’s 19th District, said, “This major expansion of the campus in Abilene by Crusoe and Microsoft, West Texas has become the Silicon Prairie for AI and the backbone for America’s most consequential innovation, ensuring America – not China – will lead the next frontier of information technology.”
Weldon Hurt, Abilene Mayor, highlighted the local economic impact by saying, “We’re excited to welcome Microsoft to the Abilene community. Crusoe’s existing data center campus has already contributed thousands of direct jobs to Abilene and fuelled the local economy.”
With this newly announced expansion of the campus, Crusoe anticipates the economic and tax contributions to significantly increase. The first eight buildings of Crusoe’s existing data center campus in Abilene are expected to deliver up to 32 percent of the City of Abilene’s and up to 25 percent of Taylor County’s current FY 2025 Budgeted Property Tax Revenue.