- As per the report, there is no clarity on whether Microsoft has a customer ready to rent the servers after the site becomes operational.
- The lease could bolster the growth of its Azure AI business, as per The Information.
- Meta is also reportedly considering leasing the planned expansion site after Oracle and OpenAI shelved plans to expand.
Microsoft Corp. (MSFT) is reportedly considering leasing hundreds of megawatts of data center capacity at the Abilene, Texas, site that Oracle Corp. (ORCL) walked away from last week.
According to a report from The Information, which cited people familiar with the matter, Microsoft’s move is significant because the site is seen as a key measure of AI data center development.
In its latest earnings release, Microsoft said a majority of its finance leases of $6.7 billion for the quarter were for large data center sites.
As per The Information, there is no clarity on whether Microsoft has a customer ready to rent the servers after the site becomes operational, although the site could bolster the growth of its Azure AI business.
Meanwhile, Meta Platforms (META) is also reportedly considering leasing the planned expansion site after rival Oracle and OpenAI shelved plans to expand over collapsed negotiations.
Oracle Abandons Plans
Last week, Oracle reportedly scrapped its plans to expand its capabilities at the site after its deal with OpenAI fell through over financing negotiations and OpenAI’s evolving demand forecasts.
The AI data center campus in Abilene is part of the U.S. government’s Stargate Project, with the 1,000-acre complex still being built out even as several sections are already operational. Oracle currently leases eight buildings at the site, as per The Information, and the company was considering expanding further to support OpenAI’s requirements.
The Abilene campus, which is developed by startup Crusoe, has the potential to expand to up to 2 GW of capacity, as per the report.
Meanwhile, in its earnings call, Oracle said that it has secured more than 10 GW of power and data center capacity, expected to go online over the next three years.
Meta’s Plans
After Oracle’s expansion deal was abandoned, Nvidia (NVDA) reportedly mediated a deal between Meta and Crusoe for the site, since the buildings were developed to house Nvidia chips. Nvidia had also reportedly paid a $150 million deposit for the site.
Meanwhile, shares of MSFT have climbed about 6% in the past year, while META shares have risen more than 7%. ORCL stock has gained over 12% in the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.