Crusoe Energy, once known for turning stranded natural gas into crypto mining power, is now at the heart of a multibillion-dollar AI infrastructure push. The Denver-based startup has secured a staggering $11.6 billion to expand a massive data center in Abilene, Texas. This site is set to become OpenAI’s largest compute facility—marking a defining moment for both companies as the AI arms race intensifies.
The new investment, which pushes total funding for the site to $15 billion, is part of a broader partnership between OpenAI, Oracle, SoftBank, and MGX under a project dubbed “Stargate.” Construction began quietly in mid-2024, but the scale has grown significantly. Crusoe plans to build eight data center buildings, each capable of hosting 50,000 of Nvidia’s new Blackwell GPUs—specially designed to train advanced AI models. Once complete in 2026, the site will boast 400,000 GPUs and consume 1.2 gigawatts of power.
This is not just another data center. Oracle has already signed a 15-year lease on the site, positioning it as a dedicated backend for OpenAI’s cloud infrastructure. While OpenAI primarily relies on Microsoft Azure, this move is a clear sign that the company wants more flexibility—and more control—over its compute stack.
From Natural Gas to AI Powerhouse
Crusoe wasn’t always in the AI business. Back in 2018, it made headlines for using otherwise wasted natural gas to run crypto mining operations. But as demand for AI compute began to surge, Crusoe pivoted. That shift has brought the startup into strategic partnerships with Oracle, Microsoft, and now OpenAI.
This funding round follows a $600 million Series D just five months ago, which valued Crusoe at $2.8 billion. The new capital—led by Blue Owl Capital and backed by Primary Digital Infrastructure, Founders Fund, G2 Venture Partners, and Bain Capital Ventures—signals a whole new level of ambition.
The Abilene facility is more than just a technical marvel. Crusoe CEO Chase Lochmiller describes it as a “factory of factories”—a place designed to train the very AI systems that could one day automate the training process itself.
Keeping that many GPUs from overheating requires serious innovation. Crusoe is blending traditional air-based cooling with advanced liquid cooling systems applied directly to the chips. Meanwhile, its energy strategy is equally bold: in partnership with Engine No. 1 and Chevron, Crusoe has locked in 4.5 gigawatts of natural gas power using GE Vernova turbines, set to come online by 2027. That energy will bypass the public grid entirely, going straight to the data center. The company is also exploring wind and solar options to reduce its carbon footprint.
Economic Growth and Environmental Concerns
The project is expected to bring thousands of jobs to Abilene, with development partner Lancium helping fast-track construction using existing permits. That economic boost, however, comes with environmental concerns. A Morgan Stanley analysis estimates that global data center emissions could reach 2.5 billion metric tons of CO₂ by 2030. Crusoe maintains that its approach—which blends renewables with efficient gas use—can help minimize impact. Lochmiller even believes AI itself could unlock solutions to the energy crisis through better science and engineering.
This buildout also speaks to OpenAI’s broader goals. Now valued at $300 billion after a $40 billion round led by SoftBank in April 2025, OpenAI is scaling fast. The Stargate Project is rumored to be part of a $500 billion national initiative to secure U.S. dominance in AI. Political leaders, including President Trump, have praised the effort as a step toward technological leadership.
For Crusoe, it’s an astonishing leap—from mitigating flaring emissions to powering the next generation of artificial intelligence. As the Abilene facility edges closer to full capacity, it’s clear this isn’t just about chips and servers. It’s about reshaping the global AI landscape—and Crusoe is right at the center.
