This Week in Data Center News: 6.30.2025

The data center industry is evolving at an extraordinary pace, with significant legislative, technological, and infrastructure developments reshaping the landscape. From groundbreaking investments in cutting-edge facilities to ambitious projects aiming to redefine energy sourcing for data centers, the latest news highlights a dynamic shift in priorities for companies worldwide.

We break down a concise summary of critical data center news updates from around the country including Florida, Virginia, Missouri, and Texas.

State of Florida to end sales tax break for sub-100 MW data centers

The Florida legislature has passed HB 7031, effective August 1, 2025, which ends the sales tax exemption for data centers with a critical IT load below 100 MW. This change impacts existing sub-100 MW data centers, tenants, and contractors, as they will now be required to pay state and local sales tax (typically 6%-7.5%) on equipment, materials, and electricity. The exemption's removal may affect ongoing operations, construction costs, tenant agreements, and financial valuations of these assets.

The legislation's lack of a grandfathering clause means sub-100 MW data centers currently under construction or operation must comply after their next five-year review, potentially leading to lease breaches, higher development costs, and operational challenges. Although discussions might continue in future legislative sessions, immediate concerns remain for affected parties, who should review contracts and agreements to mitigate risks.

Meta seeks $29 billion from private capital firms to fund AI data centers

Meta is seeking $29 billion to fund its expansive AI data center initiatives, with plans to raise $26 billion in debt and $3 billion in equity from firms like Apollo Global Management and KKR. This move comes as Meta faces delays in releasing its flagship Llama 4 AI model and shifts focus to building "superintelligence" by recruiting top AI talent from competitors, reportedly offering $100 million starting packages.

The company's capital expenditure estimate for the year has surged to $72 billion, reflecting growing infrastructure investments and tariff adjustments. Competitors like Amazon and OpenAI are also ramping up efforts to build massive AI data centers, intensifying the race for dominance in AI infrastructure. Meta's ambitious investments illustrate its drive to stay ahead in AI innovation and supercomputing capabilities.

Edgecore Digital announces $17 billion investment for a 1.1+ GW data center in Louisa County, Virginia

EdgeCore Digital Infrastructure has announced a significant investment of over $17 billion in Louisa County, Virginia, to develop a 1.1+ gigawatt high-density data center campus spanning 3.9 million square feet. The development, located on 697 acres in the Shannon Hill Regional Business Park, will contribute to Central Virginia’s economic growth by providing scalable data center solutions for hyperscale and AI-focused customers.

This project is expected to generate local tax revenue, create jobs, and ensure minimal environmental impact with advanced technologies like a closed-loop air-cooled system for efficient water usage. EdgeCore emphasizes a community-first approach, drawing on best practices from its other campuses and committing to being a valuable partner to Louisa County. This addition expands EdgeCore’s active market presence to six key locations, including Ashburn, Silicon Valley, and Greater Phoenix.

Project ‘Kestrel’ announces 6 data centers in Kansas City with developers Shenandoah Computing LLC

A new large-scale development project called "Project Kestrel" is proposed near Kansas City International Airport. The plan includes six data centers built over 20 years on 380 acres at Missouri Highway 92 and N. Winan Avenue. The developer, Shenandoah Computing LLC, is seeking $100 billion in conduit bonds along with tax exemptions for real estate, personal property, and construction materials, with property tax incentives lasting up to 35 years for each phase.

This project adds to a growing trend of data center developments in the Kansas City area, driven by increasing demand for information storage and processing due to advancements in artificial intelligence. Companies like Google and Meta have already begun constructing data centers in the region, attracted by affordable land, utilities, and favorable economic incentives.

Fermi America partners with Texas Tech to build an 11 GW hyper-grid campus and bring nuclear energy to data centers in Texas

Former Texas governor Rick Perry's company, Fermi America, is partnering with Texas Tech University to build the world’s largest data energy complex in Amarillo, Texas. Named the HyperGrid campus, the project will span 5,769 acres, combining nuclear, solar, gas, and battery energy sources. Expected to generate up to 11 gigawatts of power (enough for 8-10 million homes), the facility will also house 18 million square feet of AI capacity. The project is part of Perry's push for an American "nuclear power renaissance" and aims to address the energy challenges posed by global competition, particularly with China. Construction is underway, with power delivery anticipated by the end of 2026. The facility may also carry former President Trump’s name, pending Nuclear Regulatory Commission reviews.

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