Data Center Rundown: May 2025

28 May 2025

If there’s one thing this month has made clear, it’s that the AI arms race is rapidly reshaping the data center landscape. From record-setting chip deals to global mega-projects, data infrastructure has become the battleground where tech titans are staking their futures. In this edition, we dive into Oracle’s $40 billion chip bet, OpenAI’s expanding AI empire, NTT’s global rollout, and the surging energy demands that have power providers scrambling to keep up.

Add to that a wave of strategic investments from India to Germany and the latest challenges to climate goals in the UK – and you’ve got a month packed with momentum, money, and megawatts.

Let’s get into May's Data Center Rundown.

Oracle's $40 Billion Investment in Nvidia Chips

To support the Stargate project, Oracle is set to purchase approximately 400,000 of Nvidia's high-performance GB200 chips, totaling around $40bn. These chips will power OpenAI's new data center in Abilene, Texas, expected to be fully operational by mid-2026. This move positions Oracle to enhance its cloud computing infrastructure and compete more effectively with Amazon, Microsoft, and Google.

NTT's $10bn Investment in Global Data Center Expansion

NTT Global Data Centers is investing $10bn to expand its global data center footprint. The company aims to deliver over 370 megawatts of new capacity, focusing on AI-first innovation and sustainability.

OpenAI and UAE Collaborate on Massive AI Center

OpenAI has partnered with the United Arab Emirates to construct "Stargate UAE," a massive AI data center in Abu Dhabi. The project includes a one-gigawatt AI computing cluster, with 200 megawatts expected to be operational within a year.

India's Data Center Capacity Expansion

India's data center market is experiencing rapid growth, with capacity projected to surpass 4,500 megawatts (MW) by 2030, backed by $25bn in investments. Mumbai and Chennai are leading hubs, accounting for nearly two-thirds of the country's total capacity. This expansion reflects India's increasing demand for digital infrastructure amid rising data consumption.

CenterPoint Energy's $52.5bn Capital Plan

In response to the surging demand for electricity driven by AI-powered data centers, CenterPoint Energy has increased its 10-year capital expenditure plan to $52.5bn through 2030. This includes a $4 billion allocation for new initiatives in Texas, aiming to meet the growing power requirements of major technology firms.

PG&E Reports 40% Increase in Data Center Power Requests

California's largest utility, PG&E, has seen a more than 40% increase in data center power supply requests in 2025. New projects range from 500 to 1,000 megawatts, highlighting the growing energy demands of AI-focused data centers.

German Consortium Plans AI Data Center

A consortium comprising SAP, Deutsche Telekom, Ionos, and retailer Schwarz is in discussions to build a major AI data processing center in Germany. The project seeks to secure part of the European Union's $20bn funding initiative to establish large-scale AI data centers, aiming to strengthen the EU's AI capabilities and reduce dependence on the US and China.

Five Point's $1bn Backing of PowerBridge

Five Point Infrastructure has pledged up to $1bn to PowerBridge, a newly established data-center site developer focusing on the Permian Basin. PowerBridge aims to attract technology companies by building data-center-ready locations equipped with power, broadband, and water for cooling, utilizing properties managed by LandBridge. The initiative includes plans to desalinate wastewater for cooling and construct new natural gas-powered plants.

Alibaba Cloud Reaffirms $5.27bn Global Expansion Plan

Alibaba Cloud announced it will invest ¥38bn (approximately $5.27bn) to expand its global infrastructure. The investment will support new data center builds and upgrades across Asia, the Middle East, and Europe, reinforcing Alibaba’s position in the international cloud market. This move comes amid intensifying global competition from AWS, Microsoft Azure, and Google Cloud, as Alibaba seeks to grow its enterprise and AI service footprint worldwide.

US Renewable Energy Policy Concerns

The Trump administration's opposition to renewable energy has raised concerns among US data center operators. Suspension of clean energy initiatives and cancellation of major projects could hinder growth and jeopardize America's competitive edge in the global AI race. Data centers face mounting challenges in securing reliable energy, potentially increasing costs and reliance on high-emission sources.

Data Center Emissions Challenge Net Zero Goals in the UK

A hyperscale data center in Blyth, UK, approved earlier this month, is projected to emit 184,160 tonnes of CO2 annually. This facility alone would double the area's industrial emissions, posing challenges to the UK's net zero ambitions.

That’s a wrap on May 2025!

This month, we saw just how fast the ground is shifting beneath the data center industry. The convergence of AI, geopolitics, and infrastructure investment is accelerating at a pace few imagined just a year ago.

In the meantime, if you're managing or building mission-critical facilities, now’s the time to rethink your approach. Don’t miss our webinar: Stop Reacting, Start Delivering – Proactively Transform Mission Critical Projects.

You’ll learn how to shift from reactive firefighting to forward-thinking execution in an industry where timing, precision, and scale are everything.

As always, we’ll be watching. Stay tuned for June’s roundup – this ride’s only getting faster.