Microsoft Takes Over a Texas AI Data Center Expansion After OpenAI Backs Away

Microsoft is taking over a data center construction project in Texas after OpenAI declined to pursue it.

Associated Press

Mar 30, 2026 — 2 min read

Photo of an entrance to the Stargate artificial intelligence data center complex in Sept. 2025 by Matt O'Brien/AP

March 26, 2026 (AP) – Microsoft is taking over a data center construction project in Texas after OpenAI declined to pursue it, in a move that will make the two companies neighbors at one of the nation's largest complexes for running artificial intelligence.

Data center 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 President Donald Trump was the first to officially announce it just after his inauguration last year to signal AI investments he called a “resounding declaration of confidence in America’s potential.”