This Week in Data Center News 8.4.25
- LandGate
- Aug 4
- 4 min read
Updated: Aug 6
Driven by advancements in legislation, technology, and infrastructure, the data center landscape is both booming and evolving. Globally, companies are prioritizing substantial investments in new data center facilities, focusing on both expansion and innovative approaches to energy acquisition and management to improve sustainability and operational efficiency. This week’s report summarizes these key developments, illustrating how ongoing innovation, strategic investments, and emerging legislative frameworks collectively impact the daily operations and long-term direction of data centers worldwide.
AWS buys 985 acres for data center development at Legacy Trade Center in Lamar County, Georgia
Amazon Web Services recently purchased a 985-acre site in Lamar County, Georgia, for $270 million, indicating potential plans for a data center development. This acquisition is part of the Legacy 75 Trade Center, a large industrial park project proposed to eventually feature 19 million square feet of development. While Amazon has not disclosed specific plans for the property, its acquisition aligns with the company’s growing investment in data center infrastructure to support increased online operations and customer demand. Georgia's rapidly expanding data center market suggests the site could play a significant role in bolstering Amazon's cloud computing capabilities.
Meta announces $2 billion asset handoff to third party including in-development and construction sites from their data center portfolio
Meta Platforms is looking to offset the high costs of developing AI infrastructure by exploring partnerships for data center co-development. It disclosed plans to reclassify $2.04 billion worth of data center assets as "held-for-sale," intending to contribute them to third parties for co-development within the next year. This move aligns with a broader trend among tech companies sharing the financial burden of AI infrastructure amid soaring data center construction costs. While Meta plans to internally fund much of its capital expenditures, it sees external financing as a way to maintain flexibility if infrastructure needs change.
CEO Mark Zuckerberg emphasized the massive investment required, noting plans for "superclusters" capable of supporting AI superintelligence, with some installations comparable in size to parts of Manhattan. Meta raised its annual capital expenditure forecast to $66–$72 billion, driven by AI-powered growth in ad sales, which is helping offset rising infrastructure costs.
CoreWeave acquires NEST data center for $322 million in Kenilworth, New Jersey
CoreWeave has acquired the Northeast Science & Technology Center (NEST), a mixed-use campus in Kenilworth, for $322 million in a sale arranged by Newmark. The transaction highlights growing demand for infrastructure supporting AI and cloud workloads. NEST occupies 107 acres and includes nine buildings with robust utility infrastructure, offering high-powered support for AI-driven digital operations.
Formerly owned by Merck, the site was purchased in 2023 by Onyx Equities and Machine Investment Group, who planned to develop it into a life sciences hub. CoreWeave’s acquisition, following an earlier $1.2 billion commitment to build a New Jersey data center on-site, signifies a shift toward AI-focused infrastructure and regional expansion. Strategically located near major interstates and research institutions, NEST offers strong connectivity and redevelopment potential.
Vermaland announces $33 billion data center in Pinal County, Arizona that could offer a potential 3GW of power
Arizona-based developer Vermaland has unveiled plans for a $33 billion data center industrial park in Pinal County, aiming to position the Phoenix-Tucson corridor as a leading competitor to Northern Virginia's "Data Center Alley." Spanning 3,300 acres with a capacity of up to 3 gigawatts, this development strengthens Arizona's status as the fourth-largest U.S. data center market, benefiting from affordable power costs and growing tech demand.
Located in a federally designated Qualified Opportunity Zone, the project offers investors significant tax advantages while incorporating a hybrid energy system with solar, natural gas, battery storage, and grid connectivity to support sustainable operations. With data center investments accelerating due to AI demand, this initiative aligns with market growth and advancements, contributing to Arizona's economic growth and energy transition goals.
Public Utility Commission in Pennsylvania set to develop a proposed model tariff for data centers due to stranded grid costs
Pennsylvania is evaluating how to manage the financial impact of increasing data center development on its electricity grid. The Public Utility Commission (PUC) is creating a proposed tariff model to address costs for large electricity consumers like data centers, ensuring residential ratepayers are not burdened with stranded costs. This issue is becoming critical as major companies, including Amazon and Google, invest billions in data center projects across the state.
Testimony from stakeholders highlights concerns about infrastructure investments, with experts suggesting developers should cover costs if there are no benefits to other customers. Additionally, some argue large load customers should generate their own power to minimize grid strain. Similar challenges are being addressed nationwide, with states like Ohio and Georgia implementing policies to share costs equitably. Pennsylvania's lawmakers are expected to introduce regulations shaped by PUC insights to safeguard residents and adapt to the growing energy demands from data centers.
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