Crusoe is stepping up its push into AI infrastructure with plans to build a massive 900-megawatt data centre campus in Abilene, Texas, designed to support Microsoft’s growing AI workloads. Once completed, the company’s total planned capacity in the region will climb to 2.1 gigawatts.

The new campus will include two large buildings along with its own on-site power plant. Construction has already begun, and Crusoe expects the first building to be up and running by mid-2027.

Interestingly, the project wasn’t always meant for Microsoft. Earlier reports suggest it was initially being developed for Oracle and OpenAI before plans shifted.

Microsoft says the investment reflects just how quickly demand for AI is rising. Noelle Walsh, who leads Cloud Operations and Innovation at the company, said the focus right now is on making sure the infrastructure behind AI is both reliable and able to scale.

This project builds on Crusoe’s existing footprint in Abilene. The company has already completed two 100-megawatt buildings there in under a year. Another expansion phase is underway, which will take the site to 1.2 gigawatts across eight buildings by the end of this year.

Crusoe CEO and co-founder Chase Lochmiller described the development as a purpose-built “AI factory” tailored for next-generation computing needs. He said adding 900 megawatts of on-site power generation is part of a bigger effort to strengthen the backbone of AI infrastructure in the US.

To keep operations stable, the facility will use a behind-the-meter power setup supported by battery storage. Each building is being designed to handle 336 megawatts of IT load, making it suitable for high-density GPU systems. The campus will also rely on closed-loop liquid cooling to manage heat more efficiently.

Local leaders see the expansion as a boost for the region’s economy, with expectations of new jobs and higher tax revenue. US Representative Jodey Arrington said the project reflects the growing wave of AI investment flowing into West Texas.

At the same time, Microsoft appears to be tightening hiring in some areas. Reports suggest the company has slowed recruitment in parts of its cloud and sales divisions, asking some teams to be more cautious with new hires rather than implementing a full hiring freeze.

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