This Week in Data Center News 9.15.25

This week in data center news, we're seeing major developments that highlight the industry's rapid evolution, from massive new projects to significant regulatory hurdles. AVAIO Digital has broken ground on a $6 billion data center in Mississippi, while Capstone Green Energy and Microgrids 4AI have partnered to create sustainable, AI-ready data centers. However, not all projects are moving forward smoothly, as a proposed development in Henrico, Virginia was denied due to community opposition. Meanwhile, a monumental $300 billion deal between OpenAI and Oracle shows just how critical cloud infrastructure is becoming for the future of AI.

AVAIO Digital breaks ground on $6 billion 116MW 329-acre data center in Jackson, Mississippi

AVAIO Digital has officially started site work on its $6 billion Taurus Data Center Hub in Brandon, Mississippi. This 329-acre campus is poised to become a significant center for cloud and artificial intelligence infrastructure in the Southeast. The project has secured an agreement with Entergy for electric service and has engaged Mississippi-based Yates Construction as the general contractor, signaling a strong commitment to local economic growth.

The development is emphasizing sustainability through water-efficient practices, rainwater recapture, and preserving natural landscapes. The first phase of construction, which includes over 600,000 square feet of data center buildings with 116 megawatts of power capacity, is on a fast track. This initial stage is scheduled for completion and occupancy in the first half of 2027, marking a major milestone in the development of this large-scale data center project.

Capstone signs a MOU with Microgrids 4AI to deliver AI-ready data centers with microturbines

Capstone Green Energy and Microgrids 4 AI (MG4AI) have signed a Memorandum of Understanding (MOU) agreement to deliver next-generation AI infrastructure powered by sustainable microgrids. This collaboration combines Capstone's microturbine technology with MG4AI's modular AI data center solutions to address the growing demand for scalable, liquid-cooled GPU data centers under 20MW.

The partnership integrates Capstone's Combined Cooling and Power (CCP) systems with MG4AI's containerized compute pods, enabling rapid deployment of grid-independent AI infrastructure. This solution allows enterprises to bypass multi-year grid upgrade delays while reducing operating costs and achieving greater resiliency for mission-critical AI workloads. The modular approach can scale from 140kW to 600kW per rack, providing customers with secure, sovereign, and sustainable AI environments that can be deployed in months rather than years.

For data center developers, this partnership represents a significant advancement in addressing the energy-intensive demands of AI applications while maintaining environmental sustainability through ultra-low-emission microturbine technology and advanced cooling solutions.

Henrico planning commission deny data center development from Wagner Urban Logistics LLC due to community backlash

In Henrico County, Virginia, the Planning Commission has denied a provisional use permit (PUP) for a large data center campus proposed by Wagner Urban Logistics. The project, planned for nearly 200 acres in the Varina District, faced significant opposition from local residents who raised concerns about traffic, noise, and environmental impacts, including air pollution from diesel generators and the campus's proximity to schools. This was the first permit application reviewed under new, stricter regulations for data centers that the county approved in June, which now mandate PUPs and public hearings for such projects.

Despite the developer's assertion that the proposal met all county requirements, strong community resistance influenced the decision. The Varina District Supervisor also stated he would not support the project without community approval. The Planning Commission's denial serves as a recommendation to the Henrico Board of Supervisors, which will hold a final vote on the matter on October 14. This case highlights the increasing importance of community engagement and the impact of local regulatory changes on data center development.

OpenAI and Oracle sign $300 billion deal in computer infrastructure that could change AI development

OpenAI has signed a massive $300 billion contract with Oracle to purchase cloud computing power over approximately five years. This deal is among the largest cloud contracts ever signed, highlighting the significant and growing investment in AI data centers, despite some concerns about a potential market bubble. The commitment underscores the immense computational resources required to power advanced AI models. This partnership reflects a major strategic move for both companies, signaling a huge revenue stream for Oracle and securing critical infrastructure for OpenAI's future development.

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