Weekly Data Center News: 02.23.2026

The final week of February 2026 reveals a tightening of the capital and regulatory belts. We are moving from a period of "unbounded enthusiasm" into a more disciplined phase where the feasibility of a project is judged not just by its power capacity, but by its integration into the local economy and the stability of its financing stack.

For developers, the message is one of "Circular Infrastructure." As major metros like Denver follow the moratorium trend, and capital markets show signs of friction for multi-billion dollar deals, the winners will be those who can demonstrate a "symbiotic" relationship with their host communities, whether through waste-heat reuse or harmonized zoning.

NDSU and RII Launch "Legendary Harvest" Colocation Study

North Dakota State University and the Resource Innovation Institute have launched a joint initiative to assess the feasibility of colocating high-output greenhouses with data centers to repurpose waste heat.

• Circular Economy: The study investigates using low-grade thermal energy from server cooling systems to support year-round food production in cold-weather climates.

• Developer Analysis: This is the "Social License" play of the future. By transforming waste heat into a local agricultural asset, developers can flip the narrative from "resource drain" to "community provider." In regions with high heating costs, this colocation model could be the key to bypassing the moratoriums seen in more urbanized markets.

Western Digital Sells Out Capacity Amid Hyperscale Surge

Western Digital has reported that it has completely sold out its hard drive capacity, driven by an insatiable demand for high-capacity storage from hyperscale cloud providers.

• Supply Chain Pressure: The surge in AI training data storage requirements has radically reshaped the company's balance sheet, signaling that the "hardware crunch" has moved from GPUs to the storage layer.

• Developer Analysis: Storage is the next bottleneck. Developers should anticipate increased requirements for high-density storage arrays within AI builds. This sell-out suggests that leading times for data-heavy facilities may extend as hyperscalers prioritize the physical components needed to house massive datasets.

Murraysville, PA Moves to Synchronize Data Center and Solar Zoning

The Murraysville Municipality is drafting new legislation to regulate data center and solar developments under a unified zoning framework.

• Regulatory Friction: The goal is to ensure that these large-scale infrastructure projects adhere to standard aesthetic, noise, and land-use regulations, treating data centers and energy generation as two sides of the same coin.

• Developer Analysis: This is a signal of "Zoning Harmonization." Developers should expect more municipalities to bundle data centers with the renewable energy sources that power them. Proactive developers who include solar master-planning in their initial data center applications will likely face fewer administrative hurdles.

Blue Owl Shares Dip as $4B CoreWeave Financing Falters

Blue Owl Capital saw a stock decline following reports that a planned $4 billion financing package for a CoreWeave data center in Lancaster, Pennsylvania, has failed to materialize.

• Capital Market Friction: The setback centers on the financing of a massive site intended to support CoreWeave's rapid AI expansion, highlighting a growing sensitivity to deal structures in the "Giga-scale" range.

• Developer Analysis: This is a "Reality Check" for project finance. Even with high-tier tenants like CoreWeave, the sheer scale of current capital requirements is testing the limits of private credit. Developers must diversify their funding sources and ensure "bulletproof" site entitlements to maintain lender confidence in a more cautious environment.

Denver Joins Growing List of Data Center Moratoriums

The City of Denver has officially announced a pause on all new data center developments while officials work to establish "clear and consistent guardrails" for energy and water usage.

• Regulatory Friction: Similar to the recent pauses in Madison and Canton, Denver officials expressed concern over the "unforeseen strain" large-scale facilities could place on the regional grid and municipal resources.

• Developer Analysis: Denver’s move confirms that the "pause-and-review" tactic is now a standard tool for major Western metros. For developers, this reinforces the need to target secondary or tertiary markets where "pro-growth" policies are still the norm, or to come to the table with "net-zero" water and power solutions as a prerequisite for entry.

Infrastructure Data Solutions for Data Center Developers

As capital markets tighten and metros like Denver close their doors, finding "permitted and powered" land is more critical than ever. LandGate offers the site-selection intelligence required to identify "path-of-least-resistance" 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.