This Week in Data Center News: 6.13.2025

The data center sector is expanding rapidly. Continue reading as LandGate provides a concise summary of some of the major updates in the data center industry from the past week, featuring news from Cogent, Texas Critical Data Centers, Talen Energy & Amazon Web Services in Pennsylvania, NV5 in Georgia & Nevada, and Sabey Data Centers in Texas.

Cogent converts over 24 Sprint sites to Edge Data Centers with over 160MW of capacity

Cogent has converted 24 former Sprint technical sites into edge data centers, adding 8MW of capacity and bringing its total portfolio to 180 data centers with 211MW of installed power. This expansion is part of their strategy to utilize assets obtained from T-Mobile's sale of Sprint’s wireline business in 2022. Currently, 79 of their facilities function as edge data centers, while 101 serve as core centers.

The company has also pivoted to offering 24 of its former Sprint properties on a wholesale basis, receiving multiple letters of intent from potential buyers or lessees. Cogent continues to invest in conversions amid strong demand and aims to sell excess capacity without impacting financial projections. Their Q1 2025 capital expenditures totaled $58.1 million.

Financially, Cogent reported service revenues of $247 million in Q1 2025, reflecting slight declines from the previous quarter and year. Despite revenue dips, the company's accelerated conversion strategy aims to meet growing customer demand and optimize their real estate assets.

Texas Critical Data Centers signs MoU for onsite gas generation to support a 250MW data center in Ector County, Texas

Sharon AI and New Era Helium have signed a non-binding letter of intent (LOI) to acquire a 200-acre site in Ector County, Texas, for a 250MW net-zero energy AI and HPC data center. This joint venture aims to leverage advanced carbon capture and energy transition technologies to develop scalable, energy-efficient infrastructure near key resources like fiber optics and natural gas lines.

The site acquisition is expected to be finalized within 90 days, with the initial phase of the project anticipated to go live in late 2026. Preparation is underway for a natural gas power plant and fiber connectivity, alongside discussions with hyperscalers and energy partners. Sharon AI, known for its high-performance computing and AI services, and New Era Helium, experienced in energy infrastructure, plan to create a cutting-edge facility to meet growing data center demands.

Talen Energy and Amazon Web Services sign deal to power over 2500 MW to data centers in Pennsylvania

Talen Energy and Amazon have entered a partnership to supply up to 1,920 megawatts of electricity from Talen's Susquehanna nuclear plant in Pennsylvania to Amazon Web Services (AWS) data centers. This long-term deal, lasting until 2042, ensures a steady revenue stream for Talen while fulfilling Amazon's need for carbon-free energy to power its AI and cloud operations. The collaboration also includes plans to explore building Small Modular Reactors and expanding the plant's output. This agreement reflects the rising electricity demand from data centers and AI technologies. Talen Energy’s shares jumped nearly 8% following the announcement.

NV5 awarded $5 million to design critical, high voltage substations in Georgia and Nevada

NV5, a leading provider of engineering and consulting solutions, has secured $5 million in contracts for substation design. These projects reflect NV5's expertise in critical infrastructure and its ability to deliver innovative engineering solutions. The contracts further strengthen the company's position in the energy sector while contributing to the modernization and reliability of power grids.

Sabey Data Centers announce plans to construct 786 acre data center outside Austin, Texas

Seattle-based Sabey Data Centers has proposed building a state-of-the-art data center on 786 acres in southern Hays County, near San Marcos, Texas. This would be the third data center planned in the area, a growing hub for data processing and artificial intelligence, with some facilities set to utilize power from a nearby natural gas plant. The proposal includes developing 184 acres for the facility while preserving 392 acres as open space and potentially creating a future neighborhood.

The project has sparked opposition from local residents concerned about its impact on the environment, particularly water consumption, as data centers require significant resources for operations. Other nearby data center projects, including one from Denver-based CloudBurst Data Centers, have also faced community resistance.

San Marcos City Council is set to vote on whether to negotiate a development agreement with Sabey on provisions such as annexation, planning code waivers, and infrastructure improvements. Sabey has previously built notable data centers, including a major facility in Round Rock that houses the Texas Advanced Computer Center’s new Horizon supercomputer.

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