This Week in Data Center News 8.11.25

The data center sector is in a period of intense growth and transformation, propelled by advancements in legislation, technology, and infrastructure. Globally, businesses are pouring capital into new data centers, focusing not just on expanding capacity but also on pioneering more sustainable ways to source and manage energy. These efforts are aimed squarely at improving operational efficiency and environmental impact. This week’s report sheds light on these pivotal changes, revealing how the convergence of innovation, strategic investment, and new regulatory frameworks is fundamentally redefining how data centers operate today and what their future will look like. Let's examine updates from QTS in Iowa, Meta in Louisiana, AWS alongside the GSA, Arizona Public Utilities, and Rowan Digital in Texas.

QTS breaks ground on $10 billion data center in Cedar Rapids, Iowa

QTS Data Centers announced plans to develop a $10 billion data center campus in Cedar Rapids, marking the largest economic development project in the city's history. Spread across 612 acres at the Big Cedar Industrial Center, the campus will include seven data center buildings and is expected to generate over 2,000 construction and permanent jobs. Iowa Governor Kim Reynolds and Cedar Rapids Mayor Tiffany O’Donnell emphasized the project's potential to enhance the region's economy and infrastructure.

The campus will focus on sustainability, utilizing carbon-free energy sources and water-free cooling technology, conserving approximately 4 billion gallons of water annually. Additionally, QTS has committed up to $18 million to local community initiatives, including Cedar Rapids' ReLeaf program to replace 20,000 trees. This project represents a significant investment in innovation, sustainability, and economic growth for Cedar Rapids and Iowa.

Meta partners with PIMCO and Blue Owl Capital to spearhead $29 billion for data center financing in rural Louisiana

Meta has partnered with PIMCO and Blue Owl Capital to secure $29 billion for its data center expansion in Louisiana. PIMCO will manage $26 billion in debt through bonds, while Blue Owl will contribute $3 billion in equity. This funding aligns with Meta's strategy to enhance its AI infrastructure as part of its generative AI efforts. CEO Mark Zuckerberg has outlined plans to invest heavily in multi-gigawatt AI data centers, including the Prometheus facility slated for completion in 2026 and the scalable Hyperion project. These developments signify Meta's commitment to building advanced infrastructure for its AI-driven initiatives.

AWS and GSA announce $1 billion in government cloud discounts to accelerate IT transformation

The U.S. General Services Administration (GSA) has announced a groundbreaking $1 billion agreement, known as OneGov, with Amazon Web Services (AWS) to accelerate IT transformation and AI adoption across federal agencies through 2028. This initiative aims to enhance efficiency, modernize outdated government systems, and reduce costs while advancing the U.S.'s leadership in AI. OneGov provides federal agencies with AWS credits for cloud services, support for infrastructure modernization, training resources, and a streamlined partnership model, enabling faster cloud migration and integration of AI technologies. AWS, already serving over 11,000 government agencies worldwide, will play a pivotal role in driving innovation and operational agility across U.S. federal agencies through this agreement.

Arizona Public Services and Salt River Project acquire natural gas capacity to power data center growth

Arizona utilities, including APS, SRP, and TEP, are collaborating on Transwestern Pipeline’s Desert Southwest expansion project, a new natural gas pipeline designed to address increasing energy demands and support clean energy integration. Set to be completed by late 2029, the project will transport natural gas from Texas’ Permian Basin to Arizona, ensuring year-round reliability for the region’s rapidly growing population and businesses.

The pipeline will bolster energy infrastructure by fueling critical facilities during extreme weather, providing backup when solar and wind resources are unavailable, and maintaining affordable, reliable power. Each utility independently evaluated and identified this project as the top option due to its capacity to meet growth demands and support a sustainable energy future, emphasizing Arizona’s commitment to resilience and reliability in its energy grid.

Rowan Digital breaks ground on 300MW data center outside of San Antonio, Texas

Rowan Digital Infrastructure has commenced construction on the Cinco data center campus, a 300 MW hyperscale facility in Medina County, Texas, representing a $900 million investment. Tailored to support a top US tech company, the 440-acre campus will create 600 construction jobs and over 40 permanent roles upon its 2027 completion. Recognized for its transparent approach and commitment to sustainability, Rowan aims to deliver critical digital infrastructure to support cloud and AI advancements. With this project, Rowan’s portfolio now exceeds 1 GW of contracted data center capacity, affirming its position as a leader in hyperscale development.

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