Microsoft to rent Texas data center dropped by Oracle and OpenAI, Bloomberg News reports

March 24 (Reuters) – Microsoft agreed to lease a data center project in Texas originally developed for Oracle andOpenAIBloomberg News reported Tuesday, citing people familiar with the situation.

The report stated that the Abilene facility, which has a capacity of approximately 700 megawatts, is located next to Oracle and OpenAI’s flagship Stargate campus.

According to the report, Microsoft reached a deal with developer Crusoe after both Oracle and OpenAI pulled out of talks to occupy the site.

However, a source familiar with the matter told Reuters there were no changes to OpenAI’s existing agreements with Oracle.

A spokesperson for Microsoft said it had “nothing to share” while Oracle and Crusoe did not immediately respond to requests for comment from Reuters.

Earlier this month, Bloomberg News reported that Oracle and OpenAI abandoned plans to expand an AI data center in Texas after negotiations dragged on over funding and OpenAI’s changing needs.

Oracle later said claims that planned capacity at the Abilene facility was delayed were false.

Tech companies are pouring billions of dollars into data centers to power productive AI services like ChatGPT and Copilot, which require large amounts of computing power.

(Reporting by Juby Babu in Mexico City; Editing by Shilpi Majumdar)