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Crusoe's Project Stargate data center tax break in Abilene, Texas

Apr 05, 2025 - businessinsider.com
Crusoe, a developer of data centers, is planning to invest $3.5 billion in a data center campus in Abilene, Texas, with a significant portion of this investment potentially being tax-free. The Abilene City Council has approved a tax abatement agreement that could provide Crusoe with an 85% property tax break, contingent on a minimum investment of $2.4 billion. This development is part of Project Stargate, a joint venture involving OpenAI, Oracle, and SoftBank, announced by President Donald Trump. Oracle is identified as a tenant for some of the data center buildings under construction, and Crusoe has committed to building additional data centers on Lancium's land in Abilene.

The tax abatement agreement requires Crusoe and Lancium to create 357 new full-time jobs with minimum salaries of $57,600, though the specific types of jobs are not detailed. While some critics argue that data centers do not create enough jobs to justify such tax breaks, proponents highlight the employment opportunities during the construction phase. Crusoe's development in Abilene is financed through a $3.4 billion joint venture with Blue Owl and a $2.3 billion construction loan from JP Morgan. The project is part of a broader expansion plan for Stargate, with potential additional locations being considered in Texas, Pennsylvania, Oregon, and Wisconsin.

Key takeaways:

  • Crusoe, the developer of the Stargate data center in Abilene, Texas, could receive an 85% property tax break on a $3.5 billion investment.
  • The tax abatement agreement requires Crusoe and Lancium to create 357 new full-time jobs with minimum salaries of $57,600.
  • Oracle is the tenant for two data center buildings under construction on Crusoe's campus, with plans for six additional data centers.
  • Crusoe's Abilene development is financed through a $3.4 billion joint venture with Blue Owl and $2.3 billion in construction financing from JP Morgan.
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