Microsoft has reportedly agreed to lease some 700MW of data center capacity from Crusoe's data center campus in Abilene, Texas.

The agreement comes after Oracle and OpenAI stepped back from expansion plans at the site.

The campus was first announced as part of the $500 billion Stargate project that kicked off at the beginning of 2025, and was set to provide up to 2GW of data center capacity to Oracle for use by OpenAI.

However, the two companies scaled back the plans earlier this year, instead opting to call it quits at 1.2GW - or around eight data center buildings.

Microsoft was previously slated as one of the companies in talks to take up the remaining capacity - with Meta also said to be interested - but Bloomberg now reports that an agreement has been made between Microsoft and developer Crusoe.

Citing people familiar with the situation, Microsoft will lease around 700MW of capacity at the site.

DCD has contacted Microsoft for comment.

At present, the Abilene campus has two data center buildings operating, which were launched last September. Oracle and OpenAI said of the decision to drop further development at the site: "We considered expanding it further, but ultimately chose to put that additional capacity in other locations. Today we have more than half a dozen sites under development across multiple states, including the site we're building with Oracle in Wisconsin, where the first steel beams went up just this week."

Microsoft, like many hyperscalers, has been rapidly expanding its data center footprint. In its most recent earnings call, the company revealed it had brought 1GW of data center capacity online in the last quarter alone. In 2025 as a whole, 2GW were stood up by the company.

Last week, Microsoft revealed it would no longer be seeking nondisclosure agreements (NDAs) for its data center projects, citing a need for improved transparency with local communities.