Data center

A multi-billion-dollar AI data center is planned for Greenland, aiming for 300 MW by 2027 and 1.5 GW by 2028. The project, led by a former Trump official, is securing investor commitments and navigating complex diplomatic and logistical hurdles. It aims to leverage Greenland’s cold climate and potential for renewable energy, though challenges include construction costs and evolving chip technology.

Intel’s stock is soaring due to strong demand for server chips and progress in its foundry business. Analysts predict the company may sell out of server CPUs this year, potentially leading to price hikes. Intel’s foundry ambitions, supported by government investment and promising 18A technology, are gaining traction, aiming to compete with TSMC. A partnership with Nvidia further strengthens its position in AI. Despite projected overall revenue decline, data center and AI sales are expected to see significant growth.

The EPA is stepping in to close a loophole that allowed xAI to operate its Memphis data center using temporary gas turbines, bypassing standard air pollution permits. This intervention could delay xAI’s expansion plans for its AI infrastructure. Local residents had previously raised concerns about air quality and health impacts, and environmental groups are watching closely for compliance. xAI is also facing scrutiny over its AI applications facilitating harmful content.

Microsoft pledges to cover the electricity cost increases and water consumption of its expanding data centers. The company will partner with utility providers to fund infrastructure upgrades, ensuring consumers don’t face higher bills. This commitment also includes positive contributions to local tax revenues and no property tax abatements. The initiative addresses growing energy demands driven by AI and aims to proactively engage with communities.

The data center sector is booming due to surging AI demand, with leaders like Digital Realty’s CEO Andy Power asserting that supply cannot keep pace with customer needs, especially for long-term contracts. Despite potential market bubble fears and challenges like grid connection delays and financing concerns, the industry anticipates a massive investment cycle driven by AI workloads, projected to consume half of all data center capacity by 2030. This growth underscores the critical role of data centers in the ongoing digital transformation.

OpenAI and SoftBank are partnering with a $1 billion investment to bolster AI infrastructure. SoftBank’s SB Energy will build and operate OpenAI’s Texas data center as part of the larger “Stargate” initiative. This collaboration merges SB Energy’s infrastructure expertise with OpenAI’s AI design capabilities, aiming to efficiently scale computational power for advanced AI models. The partnership reinforces SoftBank’s strategic shift towards AI, following its significant stake in OpenAI.

Microsoft has stepped forward to confirm its involvement in a proposed data center development in Lowell Charter Township, Michigan, following weeks of speculation. The tech giant seeks to build a facility on a 237-acre parcel, a project that has met significant local opposition due to concerns over energy and water usage, and a perceived lack of transparency. Microsoft has stated its intention to engage with the community to share its long-term plans before proceeding. This move aligns with Microsoft’s aggressive data center expansion to meet AI demand.

DigitalBridge shares surged nearly 50% following reports that SoftBank Group is in advanced talks to acquire the data center investment firm. This potential deal, which could be announced soon, comes as global demand for digital infrastructure, particularly for AI, intensifies. SoftBank’s move aligns with its strategic shift towards generative AI, following its recent divestment from Nvidia. DigitalBridge manages approximately $108 billion in assets, making this a significant potential consolidation in the digital infrastructure sector.

Alphabet is acquiring Intersect for $4.75 billion in cash plus debt assumption to bolster its data center and energy infrastructure. This strategic move aims to accelerate computing capacity and secure energy resources for AI development, a critical need amid intense competition. The deal integrates Intersect’s expertise in power generation with Alphabet’s data center expansion, particularly in Texas. Intersect’s California and some Texas assets will remain independent. The acquisition is expected to close by mid-2026.

Data center dealmaking reached a record high, fueled by AI infrastructure demand despite investor concerns over AI valuations. Over $61 billion was invested this year, with increased reliance on debt financing and private equity. While some tech stocks experienced pullbacks, analysts remain optimistic about the sector’s long-term growth, anticipating continued strong demand for AI applications and a robust M&A landscape in 2026. Debt issuance nearly doubled in 2025, with hyperscalers increasingly collaborating with AI labs for financing.