This Week in Data Center News 7.14.25

The data center industry is undergoing rapid evolution, driven by significant advancements in legislation, technology, and infrastructure. Recent news underscores a global shift in company priorities, marked by substantial investments in innovative facilities and ambitious initiatives to revolutionize data center energy sourcing. This report offers a concise overview of key developments from QTS in Wisconsin, Starwood in Delaware, Netrality in Indiana, Hyperscale Data in Michigan, and SunRocket capital in Illinois, illustrating how innovation, investment strategies, and new legislation are collectively shaping data center operations.

QTS looking to develop 15-building data center in Dane County, Wisconsin

A Virginia-based company, QTS Data Centers, is considering building a data center campus in Vienna, Wisconsin, with plans for 15 buildings over the next decade, starting with an initial phase of 3 to 5 centers to meet demand. The project could create over 1,000 construction jobs and involve significant investment, with each building costing $300-350 million and additional investments from tenants potentially tripling that amount. Vienna was chosen due to established relationships with Alliant Energy, the skilled local workforce, and proximity to the University of Wisconsin-Madison.

QTS’s energy-efficient cooling technology, reducing water usage by over 48 million gallons annually per data center, is part of their sustainability commitment. However, the growing presence of data centers in Wisconsin has raised concerns over potential increases in reliance on fossil fuel energy and water usage impacts. Despite this, the construction industry anticipates significant economic benefits from such projects. The plans remain in early stages, with community discussions ongoing.

Starwood files to develop 16 million-foot data center in Delaware

Plans for a massive 6-million-square-foot data center complex south of New Castle, Delaware, have been filed, representing one of the largest proposed data center projects in the nation. The complex, backed by Starwood Capital Group and potentially linked to PBF Energy, would involve a multi-billion-dollar investment and create hundreds of jobs over a phased, long-term development. The site is strategically located near key infrastructure, including a Delmarva Power substation and natural gas pipelines, which could support its power needs.

The project aligns with the growing demand for data centers due to the rise of AI applications. Local officials, including Councilman Kevin Caneco, have expressed cautious optimism, emphasizing the need for adequate buffers and community benefits while noting that a data center avoids the truck traffic concerns of warehouse developments. Delaware’s favorable tax structure and strategic location enhance its competitiveness for such projects, although the state has not explicitly prioritized data centers as a focus area. The approval process for the project is expected to take 12 to 18 months.

Netrality completes high-density data center hall at its Indy Telecom Center

Netrality Data Centers has expanded its Indy Telcom Center with a new high-density data hall, providing 1 MW of critical capacity within a 3,800-square-foot space. Designed for high-demand technologies like AI, machine learning, and HPC, the facility leverages Delta Cube3 cooling technology, which enhances efficiency with a zero-water waste system. This investment reflects Netrality’s focus on sustainability and innovation, backed by a $380 million sustainability-linked loan. Strategically located in Indianapolis, the center offers ultra-low latency connectivity across the Midwest and beyond, with over 40 on-net providers ensuring robust and scalable solutions.

Hyperscale Data reduces its $20 million debt and moves forward with its 340MW data center in Michigan

Hyperscale Data (NYSE American: GPUS) has reduced its debt by over $20 million, bolstering its financial position as it transitions into a pure-play AI data center platform. This move supports its plans to develop a 617,000-square-foot AI data center in Michigan, expected to expand power capacity from 30 MW to 340 MW over the next 44 months through agreements with local utilities, including an additional 40 MW of natural gas power within 18 months. The facility aims to cater to hyperscale AI model training and enterprise computing. The company plans to complete its separation from Ault Capital Group by the end of 2025, focusing solely on AI infrastructure services. However, project success is contingent on securing sufficient funding, regulatory approvals, and partnership agreements.

SunRocket Capital funds a $15 million solar farm and battery storage project to power AI infrastructure and data center markets in Illinois

SunRocket Capital has successfully closed $15 million in financing for a renewable energy project in Illinois, aimed at powering the growing AI and data center market. This 4 MW solar installation, paired with a 21,000 kWh battery energy storage system (BESS), supports environmentally responsible energy solutions for data centers with investment-grade offtakers. SunRocket Capital’s expertise in structured finance and collaborative projects highlights their dedication to advancing sustainable energy infrastructure. The project aligns with the increasing demand for clean energy in high-growth sectors like AI and data processing, contributing to grid efficiency and sustainability.

LandGate spurs data center development in Sterling, Colorado

Sterling, Colorado, in collaboration with LandGate, is opening its public lands for data center development, showcasing several county listings on the LandGate platform. This effort is supported by the Logan County Board of Commissioners, who issued a statement endorsing data center projects. They highlight benefits such as increased local revenue, new high-quality job opportunities, and efficient operations supported by the region’s robust energy infrastructure. With over 1 gigawatt of renewable energy and a strategic location near key pipelines and transmission lines, Logan County is positioned to attract significant data center investments and drive regional economic growth.

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