Microsoft in talks for Texas data center as AI productivity study shows modest gains
Tech giant eyes hundreds of megawatts in Abilene while new research suggests AI productivity benefits may be overstated.
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Microsoft is in advanced talks to lease hundreds of megawatts of data center capacity in Abilene, Texas, at a site previously abandoned by Oracle. The move represents a significant infrastructure investment as tech companies race to secure power capacity for AI workloads.
The Abilene site had been earmarked for Oracle's expansion plans before the company withdrew from the project. Microsoft's potential lease would transform the location into a major AI computing campus, reflecting the intense competition for data center space amid surging demand for AI infrastructure.