This Week in Data Center News 9.1.25

Data centers are growing not just in size, but also in operational intelligence, sustainability, and efficiency. This expansion is driven by global enterprises investing heavily in new facilities, thereby expanding their digital infrastructure and redefining IT power and management. This transformation is influenced by new legislation and technological breakthroughs, meeting the rising global demand for better performance and reduced environmental impact.

This week, we dive into key updates from Google in Virginia, ENGIE in Texas, BorderPlex in New Mexico, Novva in Nevada, and Hut 8 across Texas, Louisiana, and Illinois.

Google to invest $9 billion in Virginia data center growth through 2026, with new 300 acres campus outside Richmond

Google is making a significant $9 billion investment in Virginia through 2026, focused on expanding cloud and AI infrastructure across the Commonwealth. The investment includes developing a new data center campus in Chesterfield County and expanding existing facilities in Loudoun and Prince William Counties. This expansion will strengthen Google's global data center network, which serves as the backbone for the company's AI capabilities and digital services.

The investment extends beyond infrastructure development to include comprehensive workforce development programs for Virginia residents. All Virginia-based college students now receive free access to Google's AI Pro plan for 12 months, along with AI training and job search support. Several Virginia institutions, including the University of Virginia, Brightpoint Community College, and Northern Virginia Community College, are participating in Google's AI for Education Accelerator program, providing students and faculty with access to Google Career Certificates and AI training courses.

This development reinforces Virginia's position as the world's largest data center market and a leading hub for AI talent and innovation. The project aligns with Virginia's AI Career Launch Pad initiative and broader efforts to prepare the state's workforce for the evolving technology sector, positioning the Commonwealth at the forefront of the AI economy.

ENGIE North America announces partnership with Prometheus Hypercale to colocate data centers at renewable and BESS facilities along Texas I-35 corridor

ENGIE North America has partnered with Prometheus Hyperscale to develop AI-ready data centers co-located with renewable energy and battery storage facilities along the Texas I-35 corridor. Under this exclusive agreement, Prometheus will deploy high-efficiency, liquid-cooled data center infrastructure alongside ENGIE's renewable assets, with the first sites expected to go live in 2026 and additional locations planned from 2027 onward.

The collaboration combines ENGIE's expertise in renewables, batteries, and energy management with Prometheus' liquid-cooled data center design to meet growing demand for sustainable compute capacity, particularly for AI and high-performance workloads. Prometheus will work with Conduit for near-term power generation solutions, and the alliance will enable tenants to offset carbon emissions through established market mechanisms. This partnership represents an innovative approach to developing sustainable digital infrastructure that addresses both current market needs and future scalability requirements.

BorderPlex Digital Assets announces partnership with STACK for $165 billion investment to build mega-campus and microgrid infrastructure project in New Mexico

Doña Ana County commissioners have advanced a $165 billion data center project called "Project Jupiter" proposed by BorderPlex Digital Assets and STACK Infrastructure for Santa Teresa, New Mexico. The massive investment would create four hyperscale data center buildings, generate 750 permanent jobs paying $75,000-$100,000 annually, and provide $300 million in direct payments to the county over 30 years through industrial revenue bonds that avoid traditional property taxes.

The project faces significant community opposition over water usage concerns, particularly given the area's recent water crisis involving unsafe arsenic levels and utility mismanagement by the Camino Real Regional Utility Authority. While developers claim the facility will use minimal water through closed-loop cooling systems requiring only domestic water for employees, critics question the unproven technology and lack of oversight guarantees. The timeline has also drawn criticism, with the final vote scheduled just 23 days after detailed project information was first presented publicly.

The scale of this investment is unprecedented—exceeding the annual capital spending of tech giants like Microsoft ($64.5B), Google ($52.5B), and Meta ($37.25B) combined, and representing nearly twice the value of all property in neighboring El Paso County. If approved in the September 19 hearing, Project Jupiter would position itself as one of the largest private investments in New Mexico history, designed to support AI computing demands while operating independently through dedicated power generation and microgrid systems.

Novva Data Centers purchases 205 acres in Apex Industrial Park, Las Vegas for $181 million

VanTrust Real Estate has sold nearly 205 acres in North Las Vegas' Apex Industrial Park to Utah-based Novva Data Centers for approximately $181 million, representing a significant markup from VanTrust's original 2021 purchase price of less than $130,000 per acre to over $880,000 per acre. The transaction, which closed on August 8, highlights the growing demand for data center infrastructure, particularly as artificial intelligence technologies drive increased need for data storage and processing capabilities.

The sale occurs amid a broader slowdown in Southern Nevada's industrial real estate market, characterized by increased vacancies and reduced construction activity. However, data center development continues to thrive due to AI-driven demand, despite water usage concerns in the drought-stricken region. Novva, which already operates a data center near Las Vegas Motor Speedway, utilizes water-free cooling systems that rely on ambient desert air and closed-loop refrigeration rather than traditional evaporative cooling methods.

This transaction underscores the strategic value of Apex Industrial Park as a data center hub, benefiting from recent infrastructure improvements including new water pipelines and streamlined permitting processes. For data center developers, the sale demonstrates both the premium pricing for suitable land in the Las Vegas market and the continued investor confidence in the region's capacity to support large-scale digital infrastructure projects.

Hut 8 announces four data center projects totalling 1.5GW in Texas, Louisiana, and Illinois

Bitcoin mining company Hut 8 has announced a massive $2.4 billion expansion plan to add four new facilities across the United States, effectively doubling its power capacity with an additional 1,530 MW. The new sites are strategically positioned in energy-rich regions including Texas (1,180 MW), Louisiana (300 MW), and Illinois (50 MW), with all facilities having secured land and power agreements and entering active development. This expansion is backed by diversified liquidity sources including 10,278 bitcoins valued at $1.2 billion, a $200 million revolving credit facility, and a $1 billion equity program.

Once operational, Hut 8 will manage over 2.5 gigawatts across 19 locations as part of their multi-gigawatt North American growth strategy. The company's broader development pipeline spans 10,620 MW, with over 14% already in active development, positioning them to capitalize on growing demand for data centers and AI computing infrastructure. Investment analysts view this as a significant step toward establishing Hut 8 as one of the largest energy and digital infrastructure platforms globally, with potential for material stock re-rating as facilities come online and begin contracting for high-performance computing workloads.

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