This Week in Data Center News: 10.27.25

This week's data center news highlights the extreme measures the industry is taking to power the AI computing surge. To address the massive energy demands, Fermi Inc. is making a bold, multi-billion dollar commitment by ordering four large nuclear reactors to create its 11 GW "HyperGrid" campus in Texas,

The AI race is simultaneously transforming the hardware market, with Qualcomm aggressively re-entering the data center space via new AI-focused chips and rack-level systems designed to challenge established players.

On the operations side, the push for higher power densities has necessitated advanced solutions, leading to Salute’s launch of the industry’s first comprehensive Direct-to-Chip (DTC) Liquid Operations service to safely manage high-density, liquid-cooled AI environments.

However, this unprecedented growth is encountering friction, exemplified by Aurora, Illinois's 180-day zoning moratorium on new data center construction to address concerns over noise and infrastructure strain, collectively signaling that developers must now integrate technological sophistication with proactive regulatory and operational strategies to scale successfully.

Fermi Inc. orders 4 large nuclear reactors to power data center sites in Texas

.Fermi America has ordered four Westinghouse AP1000 nuclear reactors to power a large-scale data center campus near Amarillo, Texas, as part of its "HyperGrid" project developed in partnership with Texas Tech University System. The facility aims to deliver up to 11 GW of total energy capacity through a hybrid approach combining nuclear, natural gas, solar, and battery storage—specifically designed to support high-density AI and digital infrastructure workloads. With each AP1000 reactor estimated at $7 billion to construct, the first unit could break ground in 2027, targeting commercial operation by 2032 pending NRC approval.

This development reflects a strategic shift toward nuclear-backed data center infrastructure as operators seek reliable, high-capacity baseload power to meet surging AI compute demands. However, execution risk remains significant. Recent U.S. nuclear projects—most notably Georgia's Vogtle plant—have experienced severe cost overruns and schedule delays, raising concerns about Fermi's ability to navigate complex regulatory, financial, and supply-chain challenges. The project's success will hinge on securing full NRC licensing, financial backing, and avoiding the pitfalls that have plagued previous large-scale nuclear builds.

If delivered on schedule and budget, the HyperGrid campus could set a new precedent for energy-intensive data center development in the U.S., particularly as competition with China's aggressive nuclear buildout intensifies. For data center developers, this announcement underscores both the opportunity and risk inherent in nuclear-powered infrastructure: while it offers unmatched energy density and reliability, it also demands patient capital, regulatory sophistication, and flawless project execution.

Qualcomm announces new series of data center chips, hoping to rival competitors NVIDIA & AMD for AI-related computing

Qualcomm is re-entering the data center market with a new series of AI-focused chips, the AI200 and AI250, aiming to challenge the dominance of Nvidia and AMD. The key differentiator for its upcoming AI250 chip is a new memory architecture that Qualcomm claims will increase memory bandwidth by more than tenfold. Recognizing the need for integrated solutions, Qualcomm is also offering a rack-level system designed for direct data center deployment, a shift from its typical chip-only delivery model. This move highlights an understanding that data center developers prioritize holistic, ready-to-deploy systems over individual components.

For data center developers, Qualcomm's renewed push introduces a potentially viable third major player in the AI hardware space, which could help alleviate supply chain constraints and introduce more competitive pricing. The company is emphasizing the energy efficiency of its chips, a critical consideration for developers managing power consumption and operational costs at scale. Saudi AI company Humain is an early adopter, committing to 200 megawatts of compute starting in 2026, which provides an initial, large-scale validation case for the new platform.

However, developers should approach this with cautious optimism. This is not Qualcomm's first attempt to penetrate the data center market; its 2017 Centriq family failed to gain significant traction against Intel. The success of this new venture will depend on whether Qualcomm can deliver on its performance and efficiency promises, and if its rack-level solution can seamlessly integrate into existing data center ecosystems. The competitive landscape is intense, with Nvidia's established dominance and AMD's growing influence, but the unprecedented demand for AI computing creates a significant opportunity for a powerful and efficient alternative.

Aurora, Illinois adopts temporary zoning moratorium for data centers over energy concerns

Aurora has implemented a 180-day zoning moratorium on data centers and warehouses to address mounting community concerns about noise pollution and infrastructure strain. The city's existing zoning ordinance lacks specific provisions for data center developments, which have been classified simply as warehouse facilities without requiring public hearings or giving officials authority to impose conditions. Five data center buildings are already operational in Aurora, with five more entitled but not yet constructed, and two additional applications were submitted just before the moratorium took effect.

The moratorium reflects broader regional tensions over data center development, as these facilities require massive energy consumption (equivalent to roughly 225 homes per megawatt) and fail-safe cooling systems that stress existing utility infrastructure. Neighboring Naperville is considering similar restrictions despite having proactively updated its zoning in 2023 to regulate data centers, with environmental groups urging a six-month pause on approvals. The debate highlights the fundamental challenge facing suburban communities: balancing significant tax revenue and job creation against legitimate concerns about noise, energy demand, and environmental impact.

For data center developers, this trend suggests a shifting regulatory landscape where municipalities are moving from passive acceptance to active oversight. The success of Aurora's moratorium in developing comprehensive zoning standards could influence other communities to adopt similar approaches, potentially creating more standardized but restrictive development frameworks across the Chicago metropolitan area.

Salute launches data center industry’s first direct-to-chip liquid cooling services for AI and HPC facilities

Salute has launched the data center industry’s first comprehensive service for Direct-to-Chip (DTC) Liquid Operations, specifically designed for AI and High-Performance Computing (HPC) environments. Announced at NVIDIA GTC Washington DC, this service aims to mitigate the high risks associated with liquid cooling in high-density data centers, such as equipment damage from temperature spikes or leaks, and costly downtime. As power densities in AI/HPC facilities are significantly higher than in traditional data centers, DTC cooling is essential but introduces complex operational challenges.

Salute's new offering provides a complete operational model, including design assessments, commissioning support, a library of best practices, and specialized staff training. The goal is to protect large investments in AI infrastructure by ensuring operational excellence and safety. Several major data center operators, including Applied Digital, Compass Datacenters, and SDC, have already partnered with Salute, validating the service's impact on their ability to scale AI operations safely and efficiently. These early adopters are expected to support an estimated 3300 MW of data center capacity with Salute's service by the end of 2027.

For data center developers, this service represents a critical solution for de-risking the move into high-density, liquid-cooled environments. By partnering with Salute, developers can leverage a proven, scalable operational model to meet the explosive demand for AI infrastructure, ensuring reliability, performance, and protection of capital-intensive assets. This positions Salute as a key enabler for companies looking to expand their AI/HPC footprint without developing specialized in-house expertise from scratch.

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