Weekly Data Center News: 02.02.2026

The first week of February 2026 reinforces a deepening divide in the data center landscape. We are witnessing a "tug-of-war" between monumental capital raises for hyperscale capacity and a localized "emergency brake" on new developments.

For developers, the message is clear: while the financial appetite for AI infrastructure remains insatiable, the path to execution is increasingly blocked by community pushback and regulatory pauses. Success in this quarter will require a sophisticated balance of massive capital deployment and hyper-local community engagement.

Oracle Targets $50B for Data Center "War Chest"

Oracle has announced an ambitious goal to raise $50 billion in 2026 to fund a massive expansion of its data center capacity and cloud development.

• Capacity Expansion: This capital is dedicated to building "Giga-scale" campuses to meet a $523 billion backlog in contracted demand from AI giants like OpenAI, NVIDIA, and xAI.

• Developer Analysis: Oracle's pivot from software giant to top-tier infrastructure provider signals that AI is now a "balance-sheet race." Developers should note Oracle's shift toward "Zettascale" infrastructure, or clusters of up to 800,000 GPUs, which will require unprecedented power and liquid-cooling specifications.

Madison and DeForest: The Wisconsin "No"

The Madison Common Council has enacted a one-year moratorium on new large-scale data center proposals, while QTS Data Centers has officially withdrawn its $12 billion project in nearby DeForest.

• Regulatory Friction: Madison’s pause (affecting facilities over 10,000 sq. ft.) allows officials to review impacts on the power grid and water resources. In DeForest, QTS cited community concerns as the primary reason for pulling its 1,600-acre annexation request.

• Developer Analysis: Wisconsin is becoming a case study for "NIMBY" risk. The rejection of a $12 billion investment highlights that even "shovel-ready" sites can fail without early, transparent community engagement. Developers must treat local "social license" as a critical utility, equal in importance to power or fiber.

Applied Digital Pivots to AI "Factories"

Applied Digital is aggressively pivoting its business model toward AI-optimized data centers, evidenced by major new leases and the groundbreaking of a new campus.

• Supply Chain Signal: The company recently broke ground on its 430 MW "Delta Forge 1" campus, leveraging a repeatable "AI Factory" blueprint designed for high-density hyperscale tenants.

• Developer Analysis: Applied Digital’s strategy of converting large-scale utility power into recurring infrastructure leasing (rather than short-cycle computing) is the new industry gold standard. Developers should look to this "power-first" model, where securing high-capacity energy permits precedes all other site development.

AT&T Closes $5.75B Fiber Acquisition

AT&T has completed its acquisition of Lumen Technologies’ mass markets fiber network for $5.75 billion, significantly expanding its national footprint.

• Network Expansion: The deal adds over 1 million fiber subscribers and 4 million locations across 11 states, including major hubs like Denver and Seattle.

• Developer Analysis: This consolidation of fiber assets indicates that the "last mile" of connectivity is becoming as valuable as the data centers themselves. For developers, AT&T’s increased scale in 32 states may provide more streamlined options for high-speed backhaul, though it also concentrates market power among fewer providers.

Infrastructure Solutions for Data Center Developers

As community opposition and power bottlenecks become the primary hurdles to growth, LandGate provides the parcel-level intelligence and energy availability data needed to identify "pro-growth" jurisdictions.

Book a demo with our team today to explore our tailored solutions for navigating Wisconsin-style regulatory hurdles or visit our resource library for the latest insights on AI power demand.