The Week in Data Center News: 5.30.2025

The data center industry is moving and growing at incredible speeds. Read on as LandGate breaks down and summarizes some of the top data center industry updates from the past week including news from Amazon Web Services in MN, Oracle and Newmark in TX, American Tower in NC, and DataBank in NY.

Amazon Web Services Suspends Data Center Development in Becker, MN

Amazon has paused plans for a large data center in Becker, Minnesota, citing uncertainties around costs, regulations, and timelines. The tech giant purchased 350 acres for the project in 2024 but is now reallocating resources to focus on quicker-to-execute projects. Becker city officials and Xcel Energy, which owns the adjacent Sherco coal plant slated for closure, remain optimistic about attracting new businesses to the area.

The move coincides with legislative debates in Minnesota on additional regulations for data centers, including the possible elimination of a sales tax exemption on electricity. Lawmakers are divided on whether tax incentives should continue for major corporations like Amazon, balancing economic benefits with fiscal responsibility. Some industry leaders worry these changes may deter future investments in the state.

Source: MPR News

Oracle to buy $40B of Nvidia’s chips for Open AI’s data center in Albiene, Texas

Oracle is investing $40 billion to purchase 400,000 high-performance Nvidia GB200 chips to power OpenAI's new AI-focused data center in Abilene, Texas. Part of the US Stargate Project, this initiative aims to strengthen America's position in the global AI landscape. Oracle will lease the site for 15 years, with the data center expected to be fully operational by mid-next year.

The project has received significant financial backing, including $9.6 billion in loans from JPMorgan and $5 billion from Crusoe and Blue Owl Capital. For Oracle, this is a strategic move to bolster its AI and cloud offerings, challenging leaders such as Microsoft, Amazon, and Google. Additionally, Oracle, OpenAI, and Nvidia are involved in a similar AI data center project in the UAE, expected to launch in 2026.

Source: NY Post

Newmark facilitates $7.1B loan to help construct Project StarGate’s 1.2 GW data center in Albiene, Texas

Newmark Group, Inc., a renowned commercial real estate advisor, has successfully arranged a $7.1 billion construction loan for the second phase of a $15 billion AI data center project in Abilene, Texas. The project, a collaboration between Blue Owl Capital, Crusoe, and Primary Digital Infrastructure, will deliver a groundbreaking 1.2-gigawatt AI data center consisting of six new buildings, set to be operational by mid-2026.

The funding, led by J.P. Morgan, underlines the critical role of robust capital solutions in advancing sustainable and efficient digital infrastructure to support next-generation technologies. This collaboration is a milestone in the evolution of hyperscale data centers, showcasing innovative approaches to energy-efficient and high-performing computing facilities.

Source: Newmark

American Tower opens up Edge data center in North Carolina

American Tower recently inaugurated its new edge data center in Raleigh, North Carolina, located in the heart of the Research Triangle region. This facility addresses the rising demand for low-latency, reliable infrastructure to support advanced technologies, including AI, hybrid cloud computing, and IoT.

Positioned at the base of an American Tower cellular site, this data center uniquely aligns wireless and wireline capabilities, offering enhanced connectivity to mobile network operators and cloud providers. With over 149,000 communication sites globally, American Tower plans for future expansion with more than 1,000 potential edge data center locations.

Source: American Tower

DataBank announces 20MW data center in Orangeburg, New York

DataBank has officially inaugurated its state-of-the-art LGA3 data center in Orangeburg, NY, designed to meet the growing demand for secure and scalable infrastructure. A critical hub for AI and high-performance computing, the facility offers high-density power, low-latency connectivity, and operational resilience. Located just 30 miles from Manhattan, this advanced data center serves as a key component of New York's "Empire AI" initiative.

The facility has already attracted industry-leading clients, including CoreWeave, and aims to strengthen the digital backbone for enterprise businesses. DataBank’s CEO, Raul Martynek, emphasized the company's commitment to supporting local communities and building partnerships, as plans for future expansions, such as LGA4, are underway. With its innovative capabilities, LGA3 positions DataBank as a leader in advanced infrastructure solutions.

Source: DataBank

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