This Week in Data Center News: 11.10.25
- LandGate
- 11 hours ago
- 5 min read
This week, the data center industry’s pivot to massive, long-term AI infrastructure was unequivocally confirmed by hyperscaler capital plans, while the focus shifted sharply to power stability and government policy as critical enablers of growth. The sheer scale of investment reached a new level, with Meta announcing a projected $600 billion spend by 2028 on data centers and AI capacity. Simultaneously, technical solutions for grid resilience are escalating, highlighted by ABB and Voltagrid’s partnership to deploy 27 synchronous condensers to stabilize networks under the strain of AI loads. On the policy front, OpenAI is lobbying Congress to expand the CHIPS Act tax credit to cover data centers, a move that could fundamentally reshape project financing. These developments underscore an unequivocal message for data center developers: success now hinges on navigating macro-level policy changes, mastering power grid integration, and structuring diverse financing strategies to meet the unprecedented capital needs of the AI era.
Meta pledges to spend $600B on data centers by 2028
Meta is signaling the biggest long-term capital commitment yet in the AI race, announcing a planned investment of up to $600 billion in data centers and AI infrastructure through 2028. This staggering figure includes CapEx and OpEx across the full infrastructure lifecycle and reflects the strategic necessity for hyperscalers to secure massive, dedicated compute capacity to train and deploy next-generation foundational models. The investment commitment also highlights the company's dual strategy of securing data center capacity through both internal buildouts, like the Hyperion project in Louisiana (developed in partnership with firms like Blue Owl Capital), and third-party partnerships.
For data center developers, this announcement validates the current gold rush mentality and creates enormous opportunities for strategic partnerships. The scale of Meta's spending means traditional construction timelines and capacity planning models are obsolete. Developers must position themselves as long-term, financial partners capable of executing projects with speed and securing novel financing structures, (such as the PIMCO and Blue Owl collaborations) that can absorb billion-dollar tranches of investment. Furthermore, it reinforces the trend of hyperscalers moving into new, lower-cost geographies to secure the necessary land and power for these multi-gigawatt campuses.
ABB & Voltagrid partner to enhance grid stability by supplying 27 synchronous condensers and prefabricated eHouse units for AI growth
Addressing the critical constraint of grid stability, ABB and Voltagrid have announced a strategic partnership to deploy 27 synchronous condensers and associated prefabricated eHouse units across the United States. Synchronous condensers are crucial pieces of rotating electrical equipment that enhance power system stability by managing reactive power and providing system inertia, which is essential for preventing blackouts and stabilizing voltage fluctuations caused by the non-synchronous, intermittent nature of renewable energy sources that are increasingly tied to data center PPA commitments.
For data center developers, this partnership highlights the increasing sophistication and necessity of grid-facing infrastructure. As AI loads demand massive, stable power delivery, developers can no longer rely solely on utility upgrades. Investing in or partnering with suppliers that integrate technologies like synchronous condensers directly into the power delivery chain is becoming a critical de-risking strategy. The market takeaway is clear: facilities that contribute to grid stability, rather than merely drawing power, will be highly favored by utilities and, consequently, by major AI tenants. The pre-fabricated eHouse units also point toward the industry’s need for rapid, modular deployment of complex power infrastructure.
Meta & Blue Owl Capital partner to develop Hyperion data center in Richland Parish, LA
Meta has structured one of the largest data center finance deals to date, reportedly clinching a deal worth nearly $30 billion with financial heavyweights Blue Owl Capital and PIMCO to fund its Hyperion data center project in Richland Parish, Louisiana. This massive collaboration underscores the growing necessity for hyperscalers to utilize sophisticated, structured financing to keep pace with AI buildout demands that now eclipse traditional CapEx models. For developers, this deal signals a critical shift where capital markets firms are now acting as key infrastructure partners, providing the multi-billion dollar tranches required for gigawatt-scale AI campuses. The use of private capital to fund massive, long-term asset development in new, rural markets like Louisiana indicates that developers must increasingly build relationships beyond traditional utility and government partners to secure project funding.
OpenAI asks US government to expand CHIPS act to cover AI servers and AI data centers, requesting up to a 35% tax credit
In a significant move that could reshape the economics of AI infrastructure development, OpenAI has formally requested the U.S. government to expand the CHIPS and Science Act’s Advanced Manufacturing Investment Credit (AMIC). Currently, the 35% tax credit is limited to semiconductor fabrication. OpenAI proposes extending it to cover domestic investments in AI servers, AI data centers, and critical power grid components, arguing it would significantly lower the effective cost of capital and accelerate the U.S. AI build-out.
For data center developers, this policy proposal is a monumental piece of potential good news, presenting a high-leverage opportunity to reduce the risk and cost associated with building massive AI campuses. A 35% tax credit on the capital expenditure for a multi-billion dollar project could unlock substantial private investment and accelerate deployment timelines. Developers should closely track this legislative push, as success would create an enormous competitive advantage for U.S.-based infrastructure. Furthermore, the proposal’s call for streamlining permitting and establishing a national reserve of raw materials (like copper) for AI infrastructure signals that the policy environment may soon prioritize these projects over traditional commercial development.
UK data center company Deep Green plans 24MW data center in Michigan
UK-based data center operator Deep Green is entering the U.S. market, announcing plans for a 24 MW data center in Michigan in partnership with the local utility, BWL (Board of Water & Light). This expansion highlights the rising attractiveness of secondary U.S. markets, like Michigan, that are offering strong incentives and affordable land/power to attract AI infrastructure. For data center developers, the relatively contained 24 MW capacity, compared to the gigawatt-scale projects recently announced, signals the continued viability of smaller, distributed, or edge-focused facilities. The company’s name and focus suggest an emphasis on innovative efficiency or sustainable cooling solutions, reinforcing the market trend that all new builds must prioritize these factors to secure utility and community support in emerging regions.
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