Microsoft is in advanced discussions to lease a large data center site in Abilene, Texas.
The move follows the decision by Oracle and partner OpenAI to abandon plans for a major expansion at the same location.
The facility belongs to the Stargate Project, which focuses on building massive artificial intelligence computing infrastructure.
Microsoft aims to expand its Azure cloud capabilities to meet surging demand for AI services.
Meta Platforms is also reportedly expressing interest in the Abilene site.
The situation underscores intense competition among technology companies to secure infrastructure for immense AI workloads.