Inside Microsoft and Crusoe's 900MW AI Factory Campus Plans

Crusoe has confirmed plans to scale a new AI-focused data centre campus with Microsoft in Texas, expanding one of the largest high-performance computing sites in the US.

The new campus is next to Crusoe's existing site in Abilene, slated for OpenAI and Oracle.

The announcement follows Microsoft's take-over of the latest phase of the construction project as OpenAI backed away from pursuing an expansion at the Abilene site.

Once built, the 900MW facility will support large-scale AI workloads for Microsoft, adding two new buildings and an on-site power plant, taking the total projected capacity across the wider Abilene site to 2.1GW.

The development sits alongside Crusoe’s existing infrastructure in the region, with land clearing and preparation for construction already underway. Microsoft and Crusoe's first facility is scheduled for switch-on in mid-2027, with this fast timeline reflecting the company’s approach to rapid AI deployment.

Scaling hyperscale data centre capacity

The Abilene expansion highlights the continued growth of hyperscale data centres, building on an existing site of Crusoe's.

This site currently homes two 100MW buildings, as part of Crusoe's first Abilene project, which is still under construction. By the end of 2026, the second phase of the project will bring six new buildings to the site, raising campus capacity up to 1.2GW before the 900MW facility is built in 2027.

Jodey Arrington, Chairman of the House Budget Committee and U.S. Representative from the 19th Congressional District of Texas, says: "West Texas has become the Silicon Prairie for AI and the backbone for America’s most consequential innovation.

"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, ensuring America - not China - will lead the next frontier of information technology."

The project reflects how data centre operators respond to demand from cloud providers. Microsoft’s involvement underlines the requirement for dedicated, high-capacity infrastructure that can support advanced AI models and services at scale.

Noelle Walsh, President of Cloud Operations & Innovation at Microsoft, says: "As customer demand for AI continues to grow, Microsoft is focused on ensuring access to reliable and responsible infrastructure at scale.

"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."

Power and cooling define next-generation design

The 900MW on-site power plant operates behind the meter – meaning power is generated and used directly at the facility rather than drawn solely from the public grid. This approach supports grid resilience, particularly in regions with rising demand from data centres.

The power system is paired with a medium-voltage battery energy storage system (BESS). A BESS stores electricity for later use, helping balance supply and demand while maintaining uptime during fluctuations. This supports consistent performance across high-load computing environments.

Chase Lochmiller, Co-Founder and CEO of Crusoe, says: "Crusoe is building a new AI factory campus in Abilene, purpose-built for the demands of next-generation AI.

"By integrating 900 megawatts of new on-site power generation, we will continue building the industrial foundation for American AI - at a velocity the industry has never seen."

Compute density is another defining feature, with each of the two new buildings designed to deliver 336MW of critical IT load, enabling support for advanced GPU architectures.

The campus deploys closed-loop non-evaporative liquid cooling, which circulates coolant without water loss through evaporation. This improves water efficiency while maintaining the thermal performance required for high-density racks.

Local impact and data centre economics

Beyond infrastructure, the Abilene campus plays a direct role in regional economic activity. Weldon Hurt, Mayor of Abilene, says: "This new project will further strengthen our local economy; supporting our restaurants, our home builders while creating high-paying jobs for Abilene citizens."

The existing eight buildings at the site already contribute a notable share of local tax revenue, accounting for up to 32% of the City of Abilene’s and up to 25% of Taylor County’s FY2025 budgeted property tax income. With the additional campus, Crusoe expects these contributions to increase further.

The construction of the data centre will generate short-term employment, and long-term operations of the campus will require skilled roles in engineering, maintenance and management of the overall site.