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Microsoft to Rent Texas Data Center Once Planned for Oracle and OpenAI

Microsoft has reportedly agreed to lease a major data center project in Texas that had originally been intended for Oracle and OpenAI.

The facility, located in Abilene, represents roughly 700 megawatts of capacity and is positioned near Oracle and OpenAI’s Stargate campus. According to reports, Microsoft reached an agreement with developer Crusoe after Oracle and OpenAI stepped back from earlier discussions over the site.

The development reflects the continued scramble among major technology companies to secure large-scale computing infrastructure for artificial intelligence. Data centers have become critical assets as firms expand generative AI services that require massive processing power.

The reported deal also shows how demand for AI capacity remains strong even as project ownership and financing plans shift between major industry players.

Microsoft Warns Data Center Growth Needs Community Trust

Microsoft President Brad Smith said gaining the trust of local communities has become essential for building data centers in the United States, as public opposition to such projects increases.

The rapid expansion of data centers, driven largely by demand for artificial intelligence and cloud services, is placing pressure on energy infrastructure and raising electricity costs. This has led to growing concerns among residents about environmental impact, water usage and pollution.

Smith emphasized that technology companies must secure and maintain community support to move forward with new developments. Without local approval, projects risk delays or cancellation.

In recent months, several proposed data center projects in regions across the Midwest and Northeast have been halted due to community resistance, highlighting the rising tension between infrastructure growth and local concerns.

The issue reflects a broader challenge for the tech industry as it scales up AI and cloud capacity while balancing environmental and social considerations.

Ecolab Buys CoolIT for $4.75B to Target AI Cooling Demand

Ecolab has agreed to acquire liquid cooling specialist CoolIT Systems from KKR for approximately $4.75 billion in cash, aiming to expand its presence in the fast-growing AI data center market.

The deal comes as technology companies increase investment in artificial intelligence infrastructure, driving demand for advanced cooling solutions. Traditional air cooling is being replaced by liquid-based systems that can handle higher chip densities and energy loads.

CoolIT provides liquid cooling technology to major industry players, including chipmakers such as Nvidia and AMD. Its systems are widely used by hyperscale and colocation data center operators.

Ecolab expects the acquisition to strengthen its capabilities by combining CoolIT’s hardware and thermal engineering expertise with its own strengths in water management, chemistry and digital monitoring. This integration is expected to position the company as a more comprehensive provider of cooling and fluid management solutions.

CoolIT is projected to generate around $550 million in revenue over the next year. The transaction is expected to close in the third quarter of 2026 and contribute positively to Ecolab’s earnings per share by 2028.