Microsoft in Advanced Talks to Lease Hundreds of Megawatts at Stargate AI Campus

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Microsoft is in talks to lease hundreds of megawatts at the 1,000-acre Stargate AI data center in Abilene, Texas, powered by renewable and stranded gas energy. The negotiations follow Oracle and OpenAI’s decision to halt expansion beyond 1.2GW to 2GW, which also attracted Meta to the site.

1. Microsoft Negotiates Stargate Lease

Microsoft is in advanced talks to lease several hundred megawatts of capacity at the 1,000-acre Stargate data center campus in Abilene, Texas. Securing this space would bolster its AI compute infrastructure amid growing demand for large-scale processing power.

2. Stargate Project Details

The Stargate campus, developed by Crusoe, is engineered to deliver up to 2GW of AI compute powered by renewable energy and stranded natural gas across a 1,000-acre site. Initial plans called for a full 2GW build-out, but Oracle and OpenAI paused expansion after scaling to 1.2GW.

3. Industry Competition for Capacity

Meta Platforms has also evaluated space at Stargate following Oracle and OpenAI’s decision to pause further scaling, underscoring a surge in AI infrastructure demand. Microsoft’s potential lease highlights intensifying competition among tech giants for power-hungry data center capacity.

Sources

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