Crusoe announced Friday that it is developing a new 900-megawatt AI factory campus in Abilene, Texas, to support Microsoft, expanding one of the nation’s largest AI infrastructure hubs, as hyperscalers compete to secure power and data center capacity for next-generation AI workloads.
The new campus will be located next to Crusoe’s existing Abilene infrastructure and will include two buildings and an on-site power plant designed to support grid resiliency. Crusoe said the additions would bring the site’s total planned capacity to 2.1 gigawatts, with land clearing already underway and the first building expected to be energized in mid-2027.
This move builds on Crusoe’s previous Abilene expansion. In March 2025, the company announced that it would expand its campus to 1.2 GW across eight buildings, with the second phase expected to be completed in 2026. Crusoe explained that Abilene’s first phase is an initial buildout of 200 megawatts that will scale to one of the largest AI infrastructure developments in the country.
The announcement comes days after Microsoft agreed to lease from Crusoe a large data center in Abilene, Texas, originally planned for Oracle and OpenAI. The leased capacity is approximately 700 megawatts, and the site is adjacent to the Stargate campus, highlighting how quickly tenants and construction plans are changing in the AI infrastructure race.
This context is important as Abilene is emerging as a strategic AI build zone. While recent reports have tied the region to Stargate-related expansion efforts, Crusoe continues to push for its own campus growth and manufacturing push.
Crusoe said earlier this month that a manufacturing facility for a modular AI factory is also under construction, highlighting how developers are striving to accelerate standardization and adoption while power remains a major bottleneck.
Crusoe said the new Abilene campus was designed with energy availability in mind. It features 900 megawatts of on-site, behind-the-meter power generation, battery storage, ultra-dense computing power, and closed-loop non-evaporative liquid cooling.
The company said the project is expected to create thousands of construction jobs and hundreds of permanent roles, and the first eight buildings on the existing campus are already expected to contribute significant tax revenue to Abilene and Taylor County.
