Microsoft Takes Over Massive Texas Data Center Project From OpenAI and Oracle

• March 28, 2026

Microsoft is set to acquire control of a significant data center project in Texas, originally intended to host nearly 1 gigawatt of computing capacity. The initiative had been started by OpenAI and Oracle, but both companies reportedly withdrew from the construction phase, leaving the opportunity open for Microsoft to step in.

Shift in AI Infrastructure Development in Texas

The Texas data center project is part of a broader national push to bolster artificial intelligence infrastructure in the United States. This effort gained momentum in the early days of Donald Trump’s second presidential term when he participated in the launch of the Stargate initiative, aimed at directing up to $500 billion over four years toward AI infrastructure development.

OpenAI and Oracle had initially planned to build data center facilities in Texas as part of this initiative, contributing to the construction of critical infrastructure to support growing AI workloads. However, both companies have since abandoned their construction plans, creating a gap in the development of one of the nation’s largest AI-focused data centers.

Microsoft has now stepped forward to take control of the project. The company’s move underscores its ongoing commitment to expanding its cloud and AI infrastructure capabilities. The addition of nearly 1 gigawatt of data center capacity in Texas aligns with Microsoft’s broader strategy to support AI applications and enterprise computing at scale.

Though specific details such as project timelines, financial terms, or operational capacities have not been disclosed, Microsoft’s takeover signals an important shift in the competitive landscape of AI infrastructure. The company’s established presence in cloud services and AI research positions it well to leverage this expanded data center footprint to serve both its existing customers and future AI workloads.

The Texas project exemplifies how large technology firms are investing heavily in infrastructure to meet the rising demand for artificial intelligence services. As AI models require immense computational resources, the availability of large-scale data center capacity plays a critical role in enabling innovation and commercial deployment.

Microsoft’s involvement in this nearly 1 GW facility highlights the increasing importance of data center real estate in strategic technology development. It also reflects the evolving dynamics among major cloud and AI industry players seeking to secure infrastructure most conducive to next-generation artificial intelligence applications and services.

Microsoft has assumed control of a nearly 1 GW Texas data center project after OpenAI and Oracle abandoned construction plans.