This Week in Data Center News 8.25.25

The burgeoning growth in data centers is not merely characterized by an increase in physical scale, but by a profound shift towards enhanced operational intelligence, sustainability, and efficiency. Concurrently, global enterprises are allocating substantial capital to new facilities, thereby not only expanding their digital infrastructure but also spearheading a transformative re-evaluation of critical IT power and management paradigms. This evolution, significantly influenced by emerging legislation and disruptive technological advancements, directly addresses the escalating global demand for both superior performance and diminished ecological impact.

This week, we dive into key updates from Oasis Digital in Virginia, Google in Indiana, Diode Ventures in Virginia, Vantage in Texas, and Nvidia’s ethernet expansion.

Oasis Digital 1.2GW, 485-acre data center approved in King George County, Virginia

Northern Virginia-based data center company Oasis Digital Properties has received unanimous approval from the King George County Board of Supervisors to build a massive 485-acre data center campus called Dahlgren West near Fredericksburg. The project will feature 10 buildings totaling approximately 6.8 million square feet and is expected to generate 1,500 construction jobs, 50-60 full-time jobs per building, and between $100-120 million in annual tax revenue for the county.

The Falls Church-based developer cited the project's location outside Northern Virginia as part of its appeal, with co-founder Ross Litkenhous describing it as "a tangible example of data centers being lured outside of Northern Virginia because of the shifting political winds and the shrinking appetite for additional data centers in Northern Virginia." This move comes amid ongoing political debate over data center proliferation in Northern Virginia, where communities have raised concerns about their proximity to residential areas and heavy resource consumption.

The Dahlgren West project represents a significant shift in data center development away from traditional Northern Virginia hubs like Loudoun and Prince William counties, where recent legal challenges have emerged. Just this month, a judge voided the rezoning decision for the massive Prince William Gateway project, which would have become the world's largest data center corridor, highlighting the growing resistance to data center expansion in the region.

Google greenlit for 468-acre data center named ‘Project Flo’ in Franklin Township, Indiana

Google moved closer to building a data center in Franklin Township after the Metropolitan Development Commission voted 8-1 on August 20 to approve rezoning 468 acres of farmland for the project. The proposal, submitted by Delaware-based Deep Meadow Ventures (which was revealed to be created by Google), will now advance to the City-County Council for a final decision expected in late September. City staff also recommended providing the company with a 10-year property tax break.

The decision disappointed local residents who have raised concerns about environmental pollution and higher utility rates. Franklin Township resident Julie Goldsberry emphasized that while residents aren't anti-development, they care about what happens near their homes. City-County Councilor Michael-Paul Hart, who represents the area, opposed the proposal, comparing it unfavorably to two manufacturing companies that provide 500 jobs combined versus the data center's projected 50 jobs while consuming far more energy.

The Metropolitan Development Commission will hold a public hearing on the proposed tax incentives on October 1, giving opponents another opportunity to voice their concerns about the project's impact on the community.

Diode Ventures drops plans to develop 500-acre data center in Richmond, Virginia after local community backlash

After months of public opposition, Kansas-based developer Diode Ventures has withdrawn its proposal for a large data center project in Charles City County, Virginia. The project, named Roxbury Technology Park, was planned for a 515-acre site but faced strong resistance from residents concerned about environmental impacts, noise, and lack of transparency.

Despite receiving a recommendation for approval from the county planning commission in May, the plan was deferred by county supervisors in June following continued public outcry. Diode Ventures stated the decision to withdraw was based on "careful consideration" and an analysis of the site's readiness. The company confirmed it has no current plans to resubmit the application elsewhere in the county.

Vantage announces plans for 1.4GW, 2000-acre data center in Shackelford County, Texas

Vantage Data Centers has announced its largest investment to date, committing over $25 billion to develop "Frontier," a massive 1.4GW data center campus in Shackelford County, Texas. The 1,200-acre facility will house 10 data centers totaling 3.7 million square feet, designed specifically to meet the unprecedented demands of AI applications with ultra high-density racks of 250kW+ and liquid cooling systems to support next-generation GPU loads. Construction has already begun, with the first building scheduled for delivery in the second half of 2026.

The project is expected to create more than 5,000 jobs across construction and ongoing operations, making it a significant economic driver for the region. Frontier will follow Vantage's "sustainable by design" approach, utilizing a highly efficient closed-loop chiller system that saves billions of gallons of water annually and pursuing LEED certification. The campus represents the largest facility in Vantage's global portfolio and underscores Texas's growing importance as a strategic market for AI infrastructure providers.

Beyond the economic impact, Vantage has committed to extensive community partnerships, including financial contributions to local charities, annual college scholarships for Shackelford County students, and local hiring initiatives with training opportunities. The announcement has received strong support from Texas Governor Greg Abbott, who highlighted the project's role in creating good-paying jobs and generating revenue for local and state economies while positioning Texas as a leader in emerging technology infrastructure.

Nvidia introduces Spectrum-XGS ethernet to connect distributed data centers into giga-scale AI super-factories

NVIDIA has announced Spectrum-XGS Ethernet, a breakthrough networking technology that enables multiple distributed data centers to be connected into unified, giga-scale AI super-factories. As individual data centers reach their power and capacity limits, this new "scale-across" capability addresses the need to expand AI infrastructure beyond single facilities by overcoming the high latency and performance issues of traditional off-the-shelf Ethernet networking.

The Spectrum-XGS Ethernet technology integrates into NVIDIA's existing Spectrum-X platform and features advanced algorithms that automatically adjust to the distance between data center facilities. With precision latency management and end-to-end telemetry, the system nearly doubles the performance of NVIDIA's Collective Communications Library, enabling geographically distributed AI clusters to operate as a single supercomputer with predictable performance.

CoreWeave will be among the first companies to deploy this technology, with plans to connect their data centers into a unified supercomputer infrastructure. NVIDIA CEO Jensen Huang emphasized that these giant-scale AI factories represent essential infrastructure for the AI industrial revolution, capable of linking data centers across cities, nations, and continents. The technology is now available as part of the NVIDIA Spectrum-X Ethernet platform.

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