Data Center Rundown: July 2025

28 July 2025

We’re officially in the thick of summer – and the heat isn’t just outside. The data center industry continues to sizzle with megawatt-scale expansions, billion-dollar deals, and an arms race for AI infrastructure that shows no signs of cooling off.

This month’s edition also dives into regulatory shake-ups, environmental flashpoints, and the continued rise of second-tier markets as power and land constraints push builders further afield. Whether you're tracking capital flows, curious about policy shifts, or just want to know where the next AI supercluster is landing – this one’s got you covered.

So, grab a cold drink, find some shade, and let’s break down July’s biggest data center headlines.

OpenAI & Oracle’s Stargate Expansion

In early July, OpenAI and Oracle officially doubled‑down on Project Stargate. As per Oracle filings, they committed to a $30 billion‑annual buildout adding 4.5 GW of data center capacity – enough to power nearly four million homes. That brings OpenAI’s total within Oracle’s footprint to 5 GW, part of a broader $500bn scheme through 2029.

The first operational site, Stargate I, is in Abilene, Texas. Thousands of jobs have already been created with ambitions for up to 100,000 US workers. Microsoft remains a cloud partner – though no longer exclusive – while SoftBank continues its backing despite earlier rumors of delays.

Trump’s AI Action Plan & Regulatory Shake‑Up

President Trump rolled out the “Winning the AI Race: America’s AI Action Plan.” It includes over 90 policy measures to fast‑track AI data center construction – streamlining permits, easing environmental regulations, and promoting fossil and nuclear-fired energy to meet growing demand.

Critics warn it undermines safeguards on safety, bias, and environmental impact. Supporters include major players like OpenAI, Meta and Microsoft.

Google’s Massive $25bn Investment Across PJM Grid

Google announced a staggering $25bn investment over the next two years to build AI-ready data centers across the PJM grid – spanning 13 states, including northern Virginia. As part of this, Google is committing $3bn to upgrade two hydroelectric plants in Pennsylvania and partnering with Brookfield to secure up to 3,000 MW of clean power across a 20‑year term.

Meta’s 5GW AI Supercluster Ambitions

Meta jumped into the AI infrastructure race with plans for a 5 GW campus, including a flagship 1 GW “Prometheus” project in Ohio and the larger “Hyperion” site in Louisiana. CEO Mark Zuckerberg said one cluster alone “covers a significant part of the footprint of Manhattan.”

Meta has injected tens of billions in capex – $68bn over 18 months – with $29bn in new financing queued up.

Blackstone’s $25bn Commitment in Pennsylvania via QTS

Blackstone committed $25bn to support data center and energy infrastructure across Pennsylvania, primarily through QTS Data Centers. The strategy is expected to catalyze an additional $60 billion of private investment in the state, aiming to shore up long‑term compute capacity for AI and cloud workloads.

CoreWeave Wins $6bn Facility Contract in Pennsylvania

A Turner‑Wohlsen joint venture secured a $6bn contract to build a new AI-geared data center for CoreWeave in Pennsylvania. The project is expected to create roughly 600 construction jobs, with significant scale and GPU-driven compute capacity at the core.

Environmental Concerns at Elsham Tech Park, UK

A major proposed AI hyperscale data center at Elsham Tech Park in North Lincolnshire triggered urgency from Anglian Water – raising alarms that potable water and sewage infrastructure would be overwhelmed.

Officials urged using treated wastewater and flagged insufficient planning across the UK’s driest region. Data centers in Britain already tap nearly 10 billion litres of water annually.

Vantage Data Centers: $3bn Nevada AI Campus + More

Vantage announced a $3bn investment to build a new AI-scale campus in Nevada. This builds upon earlier deals: a €640 million Euro‑based securitization, a $5bn green loan package, and expansion plans in Ohio, Wisconsin and Arizona.

Utility Bill Risks in PJM Region

Data centers are driving wholesale electricity prices up 22% in the PJM Interconnection zone, potentially raising household bills by up to 5% starting next year. With expectations of data centers consuming 12% of US electricity by mid‑decade, consumer advocates warn of a wealth shift from residential users to corporate fleecing under subsidized or new infrastructure costs.

And that’s a wrap on July 2025!

This month was all about scale – multi-gigawatt campuses, tens of billions in fresh capital, and the continued realization that AI infrastructure is now a central pillar of global economies. But as the concrete pours and servers spin up, so too do the questions: Can utilities keep pace? Will regulations catch up – or get rolled back? And how do we build smarter, not just bigger?

The AI gold rush is no longer a future – it’s here. And if July’s headlines are any indication, the data center industry is just getting warmed up.

Want more insights like these in your inbox? Be sure to follow along for next month’s Rundown. See you in August!