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ABILENE, Texas - Crusoe, a company specializing in AI infrastructure, has partnered with Blue Owl Capital Inc. (market cap: $29.49B) and Primary Digital Infrastructure to announce the second phase of a $15 billion joint venture. This phase will fund the expansion of a 1.2 gigawatt AI data center in Abilene, Texas. Blue Owl, which boasts impressive revenue growth of 33% over the last twelve months and offers a 4.72% dividend yield, brings significant financial strength to this partnership. The project, which began its first phase in June 2024, is now set to add six new buildings to the two already under construction. According to InvestingPro analysis, Blue Owl is currently trading below its Fair Value, suggesting potential upside for investors interested in this expanding AI infrastructure play.
The first phase, which includes over 200 megawatts of capacity, is expected to be operational in the first half of 2025. The second phase kicked off in March 2025 and aims to be energized by mid-2026. This rapid development is poised to set a new standard for the delivery of green-field, hyperscale digital infrastructure. InvestingPro subscribers can access detailed financial analysis and 12 additional ProTips about Blue Owl Capital’s investment potential, along with comprehensive Pro Research Reports available for over 1,400 US stocks.
Currently, the construction site employs approximately 3,000 workers daily, with projections to increase to nearly 5,000 during the peak of the second phase. The economic impact of the first two buildings was previously estimated by the Development Corporation of Abilene to be around $1 billion over 20 years, with the full project expected to significantly amplify this benefit. Blue Owl’s strong financial position, evidenced by its healthy current ratio of 2.4 and "GOOD" overall financial health score from InvestingPro, suggests it’s well-positioned to support this massive infrastructure investment.
The data center will feature an industry-leading scale, with each building designed to operate up to 50,000 NVIDIA GB200 NVL72s on a single network fabric. This design is optimized for AI training and inference workloads. The facility will also utilize direct-to-chip liquid cooling systems, which use zero-water evaporation technology to recirculate water in a closed loop, aligning with Crusoe’s climate-oriented mission.
The selection of Abilene as the location was influenced by the availability of low-cost wind energy, which supports the company’s commitment to climate-conscious operations. Chase Lochmiller, CEO and co-founder of Crusoe, emphasized the strategic capital partnerships with Blue Owl and Primary Digital Infrastructure as being crucial to realizing such a large-scale endeavor.
Blue Owl’s Co-President and Global Head of Real Assets, Marc Zahr, expressed enthusiasm for the venture, highlighting the AI-driven demand for compute power as a significant investment opportunity. Primary Digital Infrastructure’s Chief Investment Officer, Bill Stein, also noted the project’s alignment with their strategic investment goals, focusing on AI-driven compute demand.
This joint venture represents a significant investment in the future of AI infrastructure and is expected to bring thousands of jobs to the local community while contributing tens of billions of dollars to the economy. The information for this article is based on a press release statement.
In other recent news, Blue Owl Capital Inc. reported mixed financial results for the first quarter of 2025. The company announced earnings per share (EPS) of $0.17, which fell short of the forecasted $0.19. However, Blue Owl’s revenue exceeded expectations, totaling $683.49 million compared to the anticipated $628.65 million. Despite the EPS miss, the company declared a 25% increase in its annual fixed dividend for 2025. In a significant development, Blue Owl Capital successfully closed its Digital Infrastructure Fund III at $7 billion, surpassing its initial target of $4 billion. This fund aims to invest in data centers and connectivity assets to meet the growing demands of the technology sector. Additionally, Blue Owl continues to see growth in its management fees and fee-related earnings, indicating a robust operational performance. The firm has also attracted a diverse group of institutional investors across various regions, further strengthening its global presence.
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