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


A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes

March 24 (Reuters) - Microsoft ⁠has agreed to rent a data center project ⁠in Texas that was originally being developed ‌for Oracle and OpenAI, Bloomberg News reported on Tuesday, citing people familiar with the situation.

The Abilene site, which accounts for roughly ​700 megawatts of capacity, sits next ⁠to Oracle and OpenAI's ⁠flagship Stargate campus, the report said.

Microsoft struck an agreement ⁠with ‌developer Crusoe after both Oracle and OpenAI walked away from talks to occupy the ⁠site, according to the report.

A source familiar ​with the matter, ‌however, told Reuters that there are 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 Reuters' ​requests for comment.

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

Oracle later said the claims that planned capacity at the Abilene site is ​delayed were inaccurate.

Technology companies have been ⁠pouring billions of dollars into data centers to power ​generative AI services such as ‌ChatGPT and Copilot, which require ​huge amounts of computing power.

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

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