OpenAI Backs $11.6B Data Center Project by Crusoe Energy in Texas
Crusoe Energy Systems secures $11.6 billion to build a massive new data center for OpenAI, part of a major push to expand U.S. AI infrastructure.
Crusoe Energy Systems, a Denver-based company that builds data centers, has secured $11.6 billion in debt and equity funding to construct a large new facility in Texas for OpenAI.
The new eight-building data center is set to be the biggest used by OpenAI and one of the largest dedicated AI facilities in the world. It marks the first phase of The Stargate Project—a $500 billion AI infrastructure initiative launched by OpenAI, SoftBank, Oracle, and MGX to expand AI capabilities across the U.S.
The financing round includes contributions from both Crusoe and investment firm Blue Owl Capital. Construction of the data center began in June 2024 in Abilene, Texas, following an agreement between Crusoe and Oracle. Oracle will lease the facility, and OpenAI has agreed to rent servers hosted there.
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Crusoe has raised $1.6 billion in funding so far, with support from major investors like Founders Fund, G2 Venture Partners, and Bain Capital Ventures. While interest in Crusoe remains strong, overall investment in energy-related startups has lagged behind the growing demand for power from the AI industry. In fact, 2024 saw the lowest global investment in energy startups in four years.
Meanwhile, OpenAI continues to attract record-breaking investments. The San Francisco-based company has raised $58 billion to date. In April, it secured $40 billion in a funding round led by SoftBank—the largest venture deal ever recorded. OpenAI is now valued at $300 billion, making it the second-most valuable private company in the world after SpaceX.