Microsoft (MSFT.US) expands AI computing power deployment by leasing Crusoe data center with 900MW capacity

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Zhitong Finance APP learned that AI data center company Crusoe announced that Microsoft (MSFT.US) will lease approximately 900 megawatts of computing capacity from its facility located in Abilene, Texas, which also serves as the core base for the “Stargate” project.

This collaboration will raise the overall planned capacity of the data center to approximately 2.1 gigawatts (GW). Crusoe expects that the newly expanded portion will gradually come online by mid-2027 to meet Microsoft’s growing AI computing demands.

Currently, the facility spans about 1,000 acres, with several tech giants already established there. OpenAI and Oracle (ORCL.US) are utilizing its existing capacity, with Oracle leasing eight data center buildings within the facility for OpenAI’s use. However, both companies have decided not to expand their usage scale from 1.2GW to 2GW, which also opens up expansion space for more hyperscale cloud service providers, including Microsoft Azure.

Crusoe stated that the planned 1.2GW portion is expected to be fully constructed by the end of 2026. Additionally, Meta Platforms (META.US) had previously discussed leasing expanded capacity, demonstrating the strong demand from large tech companies for AI infrastructure.

U.S. Congressman Jodey Arrington stated that West Texas is gradually becoming the “Silicon Prairie of the AI era,” and the expansion of this project not only reflects local innovation capabilities but also helps ensure that the U.S. maintains its leading position in the next generation of information technology competition.

Microsoft also emphasized that as AI demand continues to grow, the company is committed to ensuring access to reliable and sustainably scalable infrastructure. Noelle Walsh, head of Microsoft Cloud Computing and Innovation, stated that the Abilene facility is one of the key infrastructures supporting the development of the next generation of AI and will create long-term value for the local community.

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