The Data Center Digest: Friday 21st March

Lucy L.

Director - Head of Data Center Recruitment @ LVI

Published Mar 21, 2025

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Welcome to this week's edition of Data Center Digest...

The penultimate week of March, and some epic announcements across the globe.

To kick this off..

A recent report from Dell'Oro Group announced Global data centre capital expenditures (capex) rocketed to $455 billion in 2024... which is a mind boggling rise of 51% compared to the previous year.

Need I say this weeks' been a busy one!

Quick PSA I am heading to Data Center World April 14th in Washington, DC. Hit me up if you are too!

Here's a roundup of the top news and insights from the past seven days.

Who Took Centre Stage This Week?

ECP (Energy Capital Partners) and ADQ $25 Billion Partnership

Energy Capital Partners (ECP) has entered into a $25 billion partnership with Abu Dhabi's sovereign wealth fund, ADQ, to invest in U.S. power generation and energy infrastructure projects, focusing on data centers and cloud-computing services. This collaboration aims to meet the increasing demand from large data center operators, enhancing ECP's capabilities in delivering essential power infrastructure. WSJ+1Axios+1

By aligning with ADQ's substantial resources and leveraging relationships in the tech industry, ECP seeks to expand its energy solutions for hyperscalers like Amazon, Google, and Microsoft. The partnership will concentrate on behind-the-meter projects to ease regulatory delays and may include both natural gas and renewable energy solutions to meet continuous power requirements while offering carbon offsets.

Regional Highlights

North America

Chevron's Data Center Initiatives: Chevron is advancing plans to develop U.S. data centers equipped with dedicated power generation. The company is moving into permitting and engineering stages for multiple sites, aiming to meet the growing energy demands driven by advancements in artificial intelligence. These data centers are expected to come online by 2027 or 2028, primarily utilizing natural gas for power, with designs accommodating substantial electricity needs comparable to mid-sized cities. Reuters
Hut 8 AI Data Center Collaboration: Hut 8, a prominent Bitcoin mining company, has seen a significant surge in its shares amid speculation about a collaboration with Meta on a $12 billion artificial intelligence data center project in Louisiana. The first phase aims to construct two large buildings by the end of 2025, creating thousands of jobs. While neither company has officially confirmed the partnership, reports suggest Hut 8's facility might be leased to Meta. Investor's Business Daily+1San Antonio Express-News+1
Crusoe $3.4 Billion AI Data Center Joint Venture: Crusoe Energy Systems, in collaboration with Blue Owl Capital and Primary Digital Infrastructure, has announced a $3.4 billion joint venture to develop a 206 MW AI data center at the Lancium Clean Campus in Abilene, Texas. The facility is designed to support high-energy-density AI workloads, with occupancy expected to begin in the first half of 2025. The project aims to operate up to 100,000 GPUs on a single integrated network fabric, advancing AI capabilities. San Antonio Express-News+2Crusoe+2Reuters+2
Beacon AI Centers New Developments in Alberta: Beacon AI Centers continues its aggressive expansion with announcements of several new data center projects in Alberta, Canada, aiming to position the region as a leading hub for AI and data infrastructure. Chestermere Campus: The company plans a 400 MW data center campus on 310 acres in Chestermere, near Calgary, with a CA$4 billion investment. A public meeting to discuss land use changes is set for this week.
Stargate's $500 Billion AI Data Center Initiative: A consortium including President Donald Trump, OpenAI, Oracle, and SoftBank has announced 'Stargate,' a $500 billion project to build AI data centers and power generation infrastructure across the U.S., starting with construction near Abilene, Texas. The initiative aims to create over 100,000 jobs, though it faces challenges related to funding and rapid execution.
Oracle Involvement in AI Data Center Projects: Oracle has been actively involved in AI data center developments, including its participation in the Stargate project. The company is collaborating with various partners to expand its data center infrastructure, aiming to meet the growing demand for AI and cloud services. Specific details about Oracle's latest data center announcements in the past week are limited.
Goodman Breaks Ground on New Data Center in Los Angeles: Goodman Group has officially broken ground on a new data center facility in Los Angeles.The new facility will cater to the increasing demand for data center space in the LA region. The development is part of Goodman’s strategy to expand its global footprint, and it will feature high-quality infrastructure designed to support the growing need for cloud services and data storage. The facility is expected to provide state-of-the-art services to meet the needs
DigitalOcean to Deploy GPUs at Flexential Data Centers: DigitalOcean has entered into a partnership with Flexential to deploy GPUs (Graphics Processing Units) at Flexential’s data centers. The integration of GPUs is expected to enhance DigitalOcean's cloud computing capabilities, allowing them to deliver high-performance computing services, including AI, machine learning, and data analytics, to their customers. This move is seen as a significant step in improving DigitalOcean’s offerings to meet growing demand for GPU-powered workloads.
Oppidan's Data Center Development in Minnesota: Oppidan, a real estate development firm, has announced plans to develop a new data center facility in Minnesota. The project aims to provide state-of-the-art infrastructure to support the increasing demand for data processing and storage in the region. Further details regarding the project's scale and timeline are yet to be disclosed
New Era Helium and Sharon AI's Texas Project: New Era Helium and Sharon AI have announced plans to build a 250MW net-zero AI and high-performance computing data center on a 200-acre site in Ector County, Texas. The joint venture, Texas Critical Data Centers (TCDC), benefits from existing infrastructure, including fiber optics and natural gas transmission lines, facilitating carbon capture initiatives. The first phase is expected to be completed by late 2026. Midland Reporter-Telegram
Nvidia's GTC 2025 Announcements: At Nvidia's GTC 2025 event, CEO Jensen Huang unveiled several innovations, including the new generation Blackwell GPUs, data center hardware, and AI tools. Notably, the Blackwell Ultra NVL72 is set for release in late 2025, followed by the Rubin NVL 144 in 2026, and Rubin Ultra NVL576 in 2027. Nvidia also introduced the Grace Blackwell in production and new NVLink hardware, emphasizing their leadership in AI innovation and a comprehensive roadmap for future developments. TechRadar+1Tom's Guide+1

Cisco’s 100MW PPA with X-Elio in Texas: Cisco has entered into a 100MW power purchase agreement (PPA) with X-Elio, a renewable energy company, in Texas. This move is part of Cisco's broader sustainability efforts and highlights its commitment to sourcing renewable energy for its data centers.
Digital Realty Expansion in Garland, Texas: Digital Realty has filed plans for the expansion of its data center campus in Garland, Texas. This expansion is in response to the growing demand for data center services in the region, enhancing Digital Realty’s capacity in one of the country’s key data center hubs.
Microsoft’s Expansion in Illinois and Wisconsin: Microsoft has announced an expansion of its data center campus in Garland, Texas, and has also acquired land in Racine County, Wisconsin, for a new data center. The expansion reflects Microsoft’s efforts to scale its data center infrastructure to meet the growing demand for cloud services.
CoreWeave Valuation at $23 Billion: CoreWeave, a leading player in cloud infrastructure and GPU-as-a-service, is eyeing a $23 billion valuation as it prepares for a share sale targeting existing investors. This move underscores the company's rapid growth and ambition in the data center and cloud computing space.
Backblaze’s Capacity Lease with Cologix: Backblaze has signed a lease agreement with Cologix for capacity in its Toronto data center. This partnership allows Backblaze to expand its data storage and backup solutions in Canada, marking a strategic step in the company’s growth within the North American market.
Core Scientific Expansion into Dalton, Georgia: Core Scientific plans to build a new AI data center, Dalton 4, on greenfield land adjacent to its existing facilities in Dalton, Georgia. This expansion aims to enhance the company's high-performance computing capabilities to meet the growing demands of AI workloads.

Europe

NTT Ltd.'s Expansion into Paris: NTT Ltd. has revealed plans to develop and operate its first data center campus in the Paris region. The 14.4-hectare site, located approximately 50 km south of Paris in Le Coudray-Montceaux and Corbeil-Essonnes, will support a planned capacity of 84 MW across three data centers. This expansion aims to enhance NTT's presence in the European market.
Tritax Big Box's Data Center Near Heathrow: Tritax Big Box Reit is set to construct the UK's largest data center near Heathrow Airport. The company has acquired 74 acres of land for £70 million and plans to build a three-story, 448,000 sq ft facility at an estimated cost of £365 million. The data center is expected to be operational by the end of 2027, delivering up to 147 MW of power. Latest news & breaking headlines
France's €109 Billion AI Investment: President Emmanuel Macron has announced a €109 billion investment plan in artificial intelligence to bolster Europe's presence in the industry. The initiative includes constructing infrastructure such as computing clusters and data centers with substantial capacities, aiming to compete with major global projects. The funding involves contributions from international investors and emphasizes leveraging France’s nuclear power for low-carbon energy. Financial Times
Delska's Sustainable Data Center in Riga: Delska has celebrated the topping-out ceremony for its sustainable data center in Riga, Latvia. The Tier III-certified facility will provide 10 MW of capacity and is one of only 20 LEED-certified buildings in Latvia, highlighting a commitment to environmental sustainability in data center operations. intelligentdatacentres.com
maincubes' Data Center Campus in Nauen: maincubes has acquired a 14-hectare plot in Nauen, near Berlin, for the development of a modern data center campus. This expansion aims to enhance data center capacity in the region, supporting the growing demand for digital infrastructure. intelligentdatacentres.com
Oracle Announces $5 Billion Investment in UK Cloud Infrastructure: Oracle is set to invest $5 billion in the UK to expand its cloud infrastructure and data centers. The new investment will support the growing demand for cloud services and AI technologies, including key developments around Oracle Cloud Infrastructure (OCI) and the launch of new data center regions in the UK. This initiative is aimed at enhancing Oracle’s ability to serve European businesses while bolstering its sustainability efforts in the region.

Blackstone's Approval for Hyperscale Data Center in North East England: Blackstone has received approval from Northumberland County Council to construct a $13 billion hyperscale data center in North East England. The facility will cover 540,000 square meters and provide data storage and cloud computing services. The project is expected to create hundreds of long-term jobs, with significant investments in the local economy, including a £110 million growth and job scheme. Reuters
Tritax Big Box's Plan for a Major Data Center Near Heathrow: Tritax Big Box Reit is planning to build the UK's largest data center near Heathrow Airport. The company has acquired 74 acres of land for £70 million and intends to construct a three-story, 448,000 sq ft facility at an estimated cost of £365 million. The data center is expected to be operational by the end of 2027, delivering up to 147 MW of power. Latest news & breaking headlines

Middle East & Africa:

UAE-U.S. Partnership for Data Center Power Infrastructure: The Abu Dhabi-based wealth fund ADQ and U.S.-based Energy Capital Partners (ECP) have formed a 50-50 partnership to invest over $25 billion in projects powering data centers and other industrial consumers. The initiative aims to develop 25 gigawatts of power capacity, with the first projects expected online in about three years.
Microsoft's Investment in South African AI Infrastructure: Microsoft plans to invest an additional 5.4 billion rand ($296.81 million) in artificial intelligence infrastructure in South Africa. This investment aims to bolster AI capabilities in the region and includes funding to cover technical certification exams for 50,000 individuals to develop high-demand digital skills. Reuters
Ooredoo's Rebranding and Investment in Data Centers: Ooredoo has spun out its data center unit, rebranding Mena Digital Hub to Syntys. This move follows a recent investment by Iron Mountain and reflects the company's commitment to enhancing data center services in the Middle East and North Africa region. Datacenter Dynamics
JLL's Management Contract with Pure DC in Abu Dhabi: JLL has secured a management contract with Pure DC for a 45MW data center facility located on Yas Island, Abu Dhabi. The contract involves providing integrated facilities management services, supporting the growing demand for data center services in the region. Datacenter Dynamics
Africa50's Investment in Raya Data Center: Africa50, a pan-African infrastructure investor, announced a $15 million investment in Raya Data Center (RDC). The investment aims to strengthen RDC’s operations and fund the development of a greenfield tier III data center in Egypt, driving the country's digital economy and startup ecosystem. africa50.com

Asia-Pacific:

Thailand's $2.7 Billion Investment in Data Centers and Cloud Services: The Thai government has approved investments totaling $2.7 billion (approximately 90.9 billion baht) in data centers and cloud services. This includes a 300-megawatt data center by Beijing Haoyang Cloud&Data Technology, valued at 72.7 billion baht, and a 35 MW data center by Thailand's GSA Data Center 02, valued at 13.5 billion baht. The surge in AI has driven the need for more data infrastructure in Southeast Asia.
Microsoft Malaysia's Launch of Three Data Centers: Microsoft is set to launch its first cloud region in Malaysia, comprising three data centers, by mid-2025. This development follows the company's $2.2 billion investment in Malaysia, announced nearly a year ago. The data centers, named the Malaysia West cloud, will be located in the greater Kuala Lumpur area and are expected to begin operations in the second quarter of the year. Microsoft's commitment is anticipated to generate $10.9 billion in revenues and create over 37,000 jobs in Malaysia over the next four years. Reuters
Oracle's Provision of Cloud Computing and AI Services to Singapore's Military: Oracle has announced that it will provide cloud computing and AI services to Singapore's defense technology arm. This agreement will equip Singapore's armed forces and defense ministry with an isolated cloud computing infrastructure, disconnected from the internet and securely linked to classified networks via encrypted devices. Oracle's generative AI tools are expected to enhance these isolated environments, particularly with AI data and imagery capabilities. Reuters
NTT's Announcement of a 500MW Data Center in Navi Mumbai, India: NTT has announced plans for a 500-megawatt data center in Navi Mumbai, India. Further details about the project have not yet been shared. Datacenter Dynamics
Bridge Data Centres Secures $2.8 Billion for APAC Expansion: Bridge Data Centres, backed by Bain Capital, has secured $2.8 billion in senior secured bank financing to drive its expansion across the Asia-Pacific region. This deal marks one of the largest-ever bank facilities for a data center operator in the APAC region.
GDS Holdings Acquires Land for Data Center Expansion in Singapore: GDS Holdings has acquired an additional plot of land in Singapore to expand its data center capacity. This development will allow the company to meet the growing demand for cloud and AI services in Southeast Asia. The new site is strategically located to cater to global and regional customers with high connectivity needs. The expansion is expected to be operational by the end of 2026. (Source)
Crusoe Energy's Data Center Expansion in Australia: Crusoe Energy announced the expansion of its data center facilities in Australia, focusing on cryptocurrency mining and AI applications. The new data centers will use excess natural gas for energy efficiency, making them environmentally sustainable. This is part of Crusoe’s push to grow its data processing capabilities in the Asia-Pacific region, addressing the growing demand for sustainable energy use in tech infrastructure.

Industry Trend: Growing Demand for GPU-Accelerated Services and Data Center Expansion

Trend Overview: The growing demand for high-performance computing (HPC), driven by advancements in artificial intelligence (AI), machine learning, and data analytics, is pushing data center operators to integrate GPUs into their offerings. Companies like DigitalOcean are leading the charge by partnering with major data center providers like Flexential to deploy GPUs at scale, enabling businesses to access powerful cloud computing resources tailored for demanding workloads.
Impact on the Data Center Industry: The move towards GPU-powered services is reshaping the way data centers approach infrastructure. Data centers are investing in specialized hardware to meet the evolving needs of industries requiring intensive processing capabilities. This trend is accelerating the demand for high-performance data centers equipped with cutting-edge technology, as companies strive to stay competitive in an AI-driven world. Additionally, the expansion of global data center footprints, such as Goodman Group's groundbreaking in Los Angeles, further underscores the industry's commitment to supporting scalable solutions for the future.
Looking Ahead: As more industries embrace AI and machine learning applications, the demand for GPU-accelerated cloud computing services is expected to continue its upward trajectory. This creates new opportunities for both established data center players and emerging startups to innovate, offering customers advanced capabilities for resource-intensive tasks while contributing to the rapid growth of the global data center ecosystem.

Insight of the Week: The Strategic Importance of Location in Data Center Growth

Location, Location, Location: The global race for data center expansion is increasingly influenced by strategic location choices. This week, we’ve seen companies like Goodman Group break ground on a new facility in Los Angeles, showcasing the importance of being in key geographic areas where demand for high-performance computing and cloud services is surging. Similarly, digital infrastructure providers like DigitalOcean’s deployment of GPUs at Flexential facilities highlight how specific site selections are critical for meeting the needs of GPU-accelerated workloads and AI-driven services.
Key Considerations for Site Selection: As data centers require more power, cooling, and connectivity to support the growing demand for high-tech services, selecting a location that provides optimal access to energy resources, low latency, and proximity to enterprise hubs becomes vital. This not only drives operational efficiency but also ensures competitiveness in a rapidly evolving market.
Why This Matters: For investors, operators, and end-users, understanding the regional trends and site-specific advantages is key to staying ahead of the curve. The choices made now will lay the foundation for tomorrow’s digital infrastructure and determine the leaders in the data center sector for years to come. As the demand for AI, cloud, and enterprise solutions continues to rise, the ability to position facilities in optimal locations will be a deciding factor in success.

Thank you for tuning into this week's edition of The Data Center Digest!

If you have feedback, insights, or stories to share, please reach out.

Looking to expand your data center team or explore new opportunities? Connect with me at Lucy.Loomes@lviassociates.com