Data Centers

Groq CEO Jonathan Ross highlights Saudi Arabia’s potential to become a major AI infrastructure hub due to its abundant energy resources, aligning with Vision 2030. The Kingdom’s low energy costs, even compared to some Nordic countries, and strategic location make it ideal for data centers. Ross envisions Saudi Arabia as a net data exporter, emphasizing the cost-effectiveness of data transmission versus electricity. Localizing AI computation near energy sources minimizes costs and leverages underutilized energy capacity, attracting tech firms and fostering regional AI innovation.

Sify Technologies (NASDAQ: SIFY) will release its Q2 FY2025-2026 financial results on October 25, 2025, before market open. A conference call to discuss results will be held on October 27, 2025, at 8:30 AM ET, hosted by Raju Vegesna and M P Vijay Kumar. Sify, a leading Indian ICT solutions provider, focuses on data centers, cloud, networks, and security, catering to India’s digital economy. Webcast and replay details are available on Sify’s website.

Credo, a semiconductor company specializing in high-speed connectivity, has seen its stock surge due to increasing demand for its active electrical cables (AECs) in AI infrastructure. Its AECs are crucial for connecting AI servers in data centers, with major clients like Amazon and Microsoft utilizing Credo’s signature purple cables. The company’s revenue doubled in fiscal year 2025, driven by the AI boom and hyperscalers’ data center expansions. While facing competition, Credo is expanding its product portfolio and collaborating with hyperscalers to meet the insatiable demand for AI connectivity solutions.

US electricity providers face escalating demand projections driven by the AI boom, creating forecasting challenges due to tech companies’ competitive utility negotiations and duplicated project proposals. This strains grid reliability and potentially raises electricity prices, while regulatory pressures to decarbonize add complexity. Experts debate the accuracy of demand forecasts, with some fearing overvaluation in the stock market. While infrastructure investment surges, concerns remain about supply chain constraints and the pace of new generation capacity, pushing focus towards renewables and alternative solutions like on-site power generation.

Oracle’s shares rose after projecting significant revenue growth driven by AI infrastructure. The company forecasts $20 billion in AI-powered database revenue by fiscal year 2030, a substantial increase from previous estimates. Oracle secured $65 billion in new cloud infrastructure commitments this quarter, including a major deal with Meta. The company is expanding its cloud infrastructure, competing with Amazon and Google, and offers its database solutions on rival platforms. Oracle also secured a commitment from OpenAI valued at over $300 billion. They project adjusted earnings per share of $21 on $225 billion in revenue for fiscal 2030.

Europe’s AI ambitions are threatened by increasing water scarcity. Data centers, crucial for AI, consume significant water, especially in water-stressed Southern Europe where tech giants are investing heavily. Experts highlight the lack of integrated planning, prioritizing AI over sustainability. While the EU emphasizes green computing and recycling, concerns persist about the overall water footprint, including off-site energy generation. Some regions are facing tensions and enacting restrictions due to strain on resources, prompting the industry to explore sustainable innovations like non-potable water feeds and water-efficient designs.

Nvidia, Microsoft, BlackRock, and xAI are set to acquire Aligned Data Centers for $40 billion, the largest data center deal to date. This acquisition, led by the Artificial Intelligence Infrastructure Partnership (AIP), signals a surge in investment into the physical infrastructure required to support accelerating adoption of AI. Aligned, a design and operator of data centers, currently owned by Macquarie Asset Management, has 50 campuses with over 5 gigawatts of power capacity, making it an ideal initial investment for the AIP. The deal is expected to close late next year.

Abu Dhabi-backed MGX has rapidly become a key investor in AI infrastructure, partnering with hyperscalers like Microsoft and startups like OpenAI. MGX collaborates with Oracle and others in President Trump’s TikTok initiative and joins a consortium acquiring Aligned Data Centers for $40 billion. Despite geopolitical concerns, MGX’s substantial funding is welcomed by tech companies. Its chairman’s ties to the UAE government and potential affiliations with the Trump administration raise questions, particularly regarding data security and U.S. national interests. Analysts note Middle Eastern investment is essential, but caution against political entanglements.

The escalating demand for data is driving a new real estate frontier: “powered land.” Beyond traditional data centers, securing land with guaranteed access to substantial electrical capacity is now paramount. Hines estimates an additional 40,000 acres are needed to support projected growth. This has led to a focus on power infrastructure and entitlements, turning power rights into investable assets. Tech giants and energy producers are increasingly competing for powered land, reflecting energy security’s critical role in the digital economy. Investors are recognizing that enabling computation, not just building square footage, is key, with firms deploying capital to secure strategic sites globally.

Applied Digital (APLD) stock surged 16% after exceeding first-quarter revenue estimates, driven by high demand for AI data centers. Revenue reached $64.2 million, an 84% increase year-over-year. The company is expanding infrastructure, including its partnership with CoreWeave, adding 150 MW of capacity. Applied Digital secured funding for a second North Dakota campus, aiming for 600 MW total leased capacity by 2027. While revenue increased, the company reported a net loss of $18.5 million.