$3.4 Billion Joint Venture to Build AI-Powered, Sustainable Data Center in Texas
Oct 17, 2024
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Crusoe Energy Systems, Blue Owl Capital, and Primary Digital Infrastructure have joined forces in a $3.4 billion joint venture to develop a state-of-the-art AI data center at the Lancium Clean Campus in Abilene, Texas. This venture represents a significant step in advancing AI infrastructure, focusing on sustainability and high-performance computing. The 206 MW data center, designed and operated by Crusoe, will support up to 100,000 GPUs on a single integrated network fabric optimized for direct-to-chip liquid and air cooling. The center is fully leased to a Fortune 100 hyperscale tenant and is set to open for occupancy in the first half of 2025.

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The joint venture is backed by Blue Owl Capital's Real Estate platform and Primary Digital Infrastructure. Their combined expertise is set to make the project one of the most advanced data centers for AI training and inference workloads. This AI-focused data center will address the growing demand for computing power as AI continues to drive significant advancements across industries. The partnership also reflects a commitment to environmentally sustainable solutions, with the data center expected to leverage both on- and off-site renewable energy resources, including surrounding wind developments and a potential future large-scale solar installation.

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The project's economic impact is expected to be substantial, with estimates projecting nearly $1 billion in contributions to the local economy over the next 20 years. The development will create close to 100 local jobs in Abilene, focusing on local hiring and community engagement. This venture aligns with Crusoe's mission to power AI workloads sustainably and marks a significant milestone in the growth of AI-driven infrastructure.
As AI demands more energy and performance from data centers, innovative solutions like Crusoe's build-to-suit data center are vital. The facility's design, incorporating cutting-edge cooling technologies and renewable energy, demonstrates the future of data center development. Crusoe's intimate knowledge of GPUs and AI hardware enables it to address the "escape bandwidth" problem, a critical bottleneck in AI workloads. This efficiency will allow the center to meet the growing need for high-performance computing without sacrificing environmental goals.

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The $3.4 billion investment highlights Blue Owl Capital, Primary Digital Infrastructure, and other investors' confidence in the future of AI data centers. As AI becomes increasingly integral to business and technology, this venture sets a new standard for how these infrastructures should be developed—combining cutting-edge performance with a focus on sustainability.