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Bettesworth Construction
AI infrastructure

New Data Center Developments: January–February 6, 2025

AI demand drove a surge of data-center investment and construction plans in early 2025. Here are the major projects—and the power, financing, water, and permitting constraints that will determine which get built.

By Bettesworth Construction Team 10 min read
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Data-center construction accelerated sharply in January and early February 2025, driven by artificial-intelligence demand. The largest announcements involved hundreds of billions of dollars in proposed investment and multiple gigawatts of planned capacity—but most of that capacity was not yet operational.

The period’s more meaningful story was the shift from conventional site selection toward power, cooling, financing, permitting, water, and construction readiness. The projects most likely to move quickly were those with secured tenants, arranged financing, available electricity, or construction already underway.

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What changed in the data-center market

This roundup covers developments reported over approximately the month before February 6, 2025—not every project announced during the entire calendar month. It includes investment plans, financing, planning approvals, construction milestones, energy initiatives, regional cloud infrastructure, and certifications.

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These announcements should not be treated as equivalent. A proposed campus, an approved project, a financed building, a facility under construction, and an operational data center represent very different levels of commitment.

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Project stage What it means
Proposed or announced A developer or company has disclosed an intention to build or invest.
Site secured or planning approved Land or permission is in place, but financing, power, procurement, or construction may remain unresolved.
Financing arranged Capital has been committed for a specific project, often indicating a more advanced development.
Groundbreaking or construction started Physical work has begun, although delivery can still face delays.
Construction complete The building or availability-zone infrastructure is finished, but commissioning and customer availability may still be pending.
Operational Capacity is commissioned and available to customers or tenants.

That distinction matters because headline figures such as $500 billion, $65 billion, 3 GW, and 600 MW describe ambitions or planned capacity—not necessarily electricity, buildings, or computing available today.

North America: AI projects move into secondary markets

North American development was dominated by hyperscale and AI infrastructure, but much of the activity was outside established hubs such as Northern Virginia and Silicon Valley. Developers were increasingly looking for large parcels, utility cooperation, tax incentives, fiber connectivity, and a credible path to high-voltage power.

Stargate: a $500 billion infrastructure ambition

On January 21, 2025, SoftBank, OpenAI, Oracle, and MGX announced the Stargate venture, which proposed investing up to $500 billion over four years in U.S. AI infrastructure. Arm, Microsoft, and Nvidia were identified as technology partners. Oracle said the initial plan involved 10 data centers, with the possibility of expanding to 20; one Texas site was reportedly already under construction at the time.

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The figure should be read as a long-term investment ambition, not as $500 billion already spent or as completed data-center capacity. The proposal covered AI infrastructure broadly, and each site would still need financing, power, permitting, equipment, labor, and construction.

Reported secondary markets included Richmond, southern Dallas, western Chicago, Atlanta, Ohio, and northern Indiana. The geographic shift illustrates a central development challenge: the best site is increasingly the location that can deliver electricity and transmission capacity on schedule, not necessarily the location with the cheapest land.

Greenfield projects can take five years or more to develop, although unusually fast construction is possible when land, power, designs, capital, and tenants are already aligned. Stargate’s later public updates should not be used to imply that every site announced in January 2025 had reached construction or operation.

Read the original Stargate coverage.

Meta: up to $65 billion in AI-related spending

Meta said it could invest as much as $65 billion in AI-related projects during 2025. The plan included a large new data center and expanded AI hiring. Mark Zuckerberg also said Meta expected to bring approximately 1 GW of computing power online during 2025 and projected more than 1.3 million GPUs by the end of the year.

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These figures require careful interpretation. The $65 billion figure covered AI-related capital spending rather than data-center construction alone. The 1 GW figure was described as computing power and should not automatically be converted into 1 GW of facility IT load or utility demand. The GPU number was a company projection. Meta had also announced a roughly $10 billion Louisiana data center shortly before this reporting cycle.

See the Meta spending announcement coverage.

Amazon Mississippi: rising costs and public infrastructure

Amazon’s planned data-center campuses north of Jackson showed how quickly AI infrastructure costs can expand. State planning documents reported by Bloomberg put the estimated cost at $16 billion, up from $10 billion—a 60% increase.

Approximately $7.2 billion was allocated to servers, fiber-optic cable, and other technology infrastructure. Mississippi’s incentive package included about $278 million for infrastructure upgrades and workforce training. Proposed wastewater infrastructure included an 8-million-gallon-per-day treatment facility.

The project was expected to create at least 1,000 full-time jobs, although state documents indicated that almost two-thirds of the positions could be filled by contractors. That distinction is important for public-sector evaluations: construction employment, contracted operations, permanent employees, tax revenue, public infrastructure costs, and water demand should be assessed separately.

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Amazon reportedly declined to comment on the revised figures and referred to earlier statements. The $16 billion estimate should therefore be attributed to state planning documents and reporting, rather than described as a final Amazon construction budget.

Review the reported Mississippi cost increase.

Abilene, Texas: financing and on-site generation

Newmark announced a $2.3 billion construction loan for a 206 MW build-to-suit data center in Abilene. The project involved Blue Owl Capital, Crusoe Energy Systems, and Primary Digital Infrastructure, was leased to a technology company, and had broken ground in 2024.

The project included 300 MW of on-site generation and was expected to deliver initial capacity in early 2025. It is significant because it combined institutional financing, a pre-leased build-to-suit structure, high-performance-computing demand, and a secondary-market location.

A pre-leased project can reduce demand risk compared with speculative construction, but it creates other dependencies, including tenant concentration, fuel or generation economics, interconnection arrangements, and the ability to commission a complex power system.

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See the Abilene financing announcement.

Louisville, Kentucky: a 400 MW planned campus

PowerHouse Data Centers and Poe Companies announced a proposed 400 MW hyperscale campus in Louisville. The first 130 MW was expected to be available in October 2026.

The distinction is essential: the full 400 MW was a campus plan, while only the first 130 MW had a stated availability target. The project was positioned for cloud and AI workloads and benefited from utility, water, connectivity, and tax-policy considerations.

Read the Louisville project announcement.

Toronto: Yondr breaks ground

Yondr Group announced the groundbreaking of a 27 MW Toronto data center, its first Canadian facility. Unlike a purely conceptual investment announcement, groundbreaking represents a physical construction milestone, although it does not guarantee immediate customer availability.

See Yondr’s Toronto announcement.

Europe: data-center policy becomes energy policy

United Kingdom AI Growth Zones

The UK government was exploring special AI Growth Zones intended to improve access to electricity and accelerate planning approvals for data centers. The first proposed zone was associated with Culham, home of the UK Atomic Energy Authority. The government was also examining whether nuclear power could support the locations.

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This was a policy and planning initiative—not evidence that nuclear-powered data centers were already operating there. The practical questions include grid connection, transmission upgrades, planning conditions, water, cooling, local consent, and the commercial maturity of any proposed nuclear technology.

Read about the UK policy proposal.

DC01UK in Hertfordshire

DC01UK received planning approval for a project described in reporting as potentially Europe’s largest data center. Reported figures included approximately £3.75 billion in project value and up to 2 million square feet.

Those descriptions should remain attributed. “Europe’s largest” may refer to planned building area or capacity, and planned capacity is not the same as commissioned IT load or operating availability.

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Pori, Finland: an integrated energy-and-compute project

CompassForge Ventures proposed an approximately €1 billion Ecogrid Energy Park in Pori. The concept integrated a data center with power-generation infrastructure intended to support the national grid.

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The project reflects a broader trend: new campuses are increasingly being designed as energy-and-compute developments rather than isolated buildings. The commercial test will be whether the generation, grid services, cooling, and data-center loads can be integrated at a cost and schedule that customers will support.

See the Pori project announcement.

Asia-Pacific: very large plans, different definitions

India: Reliance’s reported 3 GW Jamnagar project

Reliance Industries was reported to be developing a data center in Jamnagar, Gujarat, with proposed capacity of approximately 3 GW. Bloomberg reporting described it as potentially the largest data center by capacity.

This should be described as reported planned capacity—not the world’s largest operating data center. The source did not establish that the figure represented comparable IT load, total power load, utility capacity, or an entire regional campus. Those definitions matter when comparing it with other projects.

CtrlS: a proposed 600 MW Hyderabad park

CtrlS announced plans for a 40-acre, 600 MW data-center park near Hyderabad. The figure represents a proposed campus, not 600 MW of operational capacity. Delivery would depend on land development, power, approvals, cooling, equipment, tenants, and construction sequencing.

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See the CtrlS announcement.

Japan: Osaka-Kyoto and Kyushu

EdgeConneX announced a high-density, AI-ready development in the greater Osaka-Kyoto area with total capacity exceeding 140 MW by 2027, according to the roundup.

Separately, Asia Pacific Land Group and Global Compute Infrastructure announced a Kyushu joint venture. Its first project was described as capable of accommodating 120 MW of total power load, with a first phase of 60 MW. Committed power capacity was targeted for September 2027, construction could begin as early as 2026, and the broader Fukuoka prefecture vision included approximately 250 MW by 2029.

The 250 MW figure should not be combined with the first Kyushu facility: it describes a broader regional development vision. Nor should total power load be treated as equivalent to IT load.

Read the Kyushu joint-venture announcement.

CapitaLand’s Osaka development

CapitaLand Investment was reported to be developing its first Japanese data center in Osaka, with investment exceeding $700 million and stated facility capacity of 50 MW. Because these details came through secondary reporting, they should be attributed rather than presented as independently confirmed specifications.

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Middle East and Africa

KKR and Gulf Data Hub

KKR was reported to be investing in Gulf Data Hub, one of the Middle East’s larger data-center firms. The parties had earmarked approximately $5 billion for regional and international growth, but the financial details of KKR’s stake were not disclosed.

The $5 billion figure should not be confused with the value of KKR’s investment or the percentage ownership acquired. It was an amount earmarked for growth.

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Microsoft Saudi Arabia

Microsoft said construction was complete on all three availability zones for its Saudi Arabia Azure region, with customer availability anticipated in 2026. Each zone was described as having independent power, cooling, and networking infrastructure.

This is a useful example of why construction completion and operational availability should be reported separately: the physical construction milestone had been reached, but the service was still expected in the future.

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Read Microsoft’s Saudi Arabia update.

African infrastructure milestones

The reporting cycle also included Hormuud Telecom’s plans for greener data centers in Somalia and Raxio Group facilities in Mozambique and Ethiopia achieving Uptime Institute Tier III Certification of Constructed Facility.

These developments should not be presented as equivalent to hyperscale campus announcements. They represent regional infrastructure and certification milestones, which can be just as important for local cloud access, connectivity, resilience, and digital services.

How to interpret the headline numbers

Investment is not the same as construction spending

Corporate capital-spending guidance can include GPUs, servers, networking, land, buildings, power systems, software, and acquisitions. A project-level construction loan is a different form of commitment. The Abilene financing, for example, was tied to a specific build-to-suit facility and tenant arrangement.

Megawatts are not automatically comparable

Project announcements may refer to:

  • Critical IT load
  • Total facility power
  • Total power load
  • Utility or interconnection capacity
  • Campus capacity
  • Power available to tenants
  • Computing power
  • GPU count

A 600 MW project described in terms of total power load should not be ranked directly against a 600 MW project defined as critical IT load. Similarly, Meta’s reference to 1 GW of computing power should not be silently converted into 1 GW of electrical demand.

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“Largest” requires a definition

Claims that a project may be the world’s or Europe’s largest should specify whether the comparison concerns planned capacity, building area, IT load, utility capacity, campus size, or operational output. If the source does not define the measure, the claim should remain attributed and qualified.

The constraints that will determine which projects get built

  1. Power and grid interconnection. Developers need more than a nearby transmission line. They need an enforceable connection schedule, generation or purchased supply, substations, protection systems, and a path through utility queues.
  2. Financing and tenant commitments. Pre-leasing and project financing can make a proposal more credible than a headline investment target, but they do not eliminate construction, tenant-concentration, or power-market risk.
  3. Permitting and public policy. Planning approvals, tax incentives, environmental reviews, transmission permissions, and local conditions can determine whether a site reaches construction.
  4. Cooling and water. AI racks generate higher heat loads and may require liquid cooling or other advanced thermal systems. Water withdrawal, water consumption, wastewater treatment, drought conditions, and municipal capacity must be evaluated separately.
  5. Construction labor and supply chains. Large campuses require specialized electrical, mechanical, controls, commissioning, and high-voltage expertise. Transformers, switchgear, generators, chillers, fiber, and GPUs can all affect schedules.
  6. Accelerator and networking availability. A completed shell is not useful AI capacity until the electrical, cooling, networking, servers, and accelerators are installed and commissioned.
  7. Community acceptance. Residents and public officials are increasingly examining jobs, tax abatements, water demand, noise, backup generation, emissions, and the cost of public infrastructure.

What construction and infrastructure professionals should track

For each announced project, the most useful questions are:

  • Is the capacity proposed, permitted, financed, under construction, commissioned, or operational?
  • Does the published MW figure describe IT load, total power, utility capacity, or a broader campus?
  • Is power contracted, physically available, under construction, or merely planned?
  • Is the facility speculative, pre-leased, build-to-suit, hyperscale, colocation, enterprise, or regional cloud infrastructure?
  • What is the stated delivery date, and what work remains before customer availability?
  • How will cooling and water demand be managed?
  • What public infrastructure, tax incentives, or workforce commitments support the project?
  • Are reported jobs permanent employees, contractors, or construction workers?

This framework is more useful than ranking projects by announced dollar value. It identifies which developments have the clearest path from press release to energized, commissioned, tenant-ready capacity.

Bottom line

January and early February 2025 marked a major acceleration in AI infrastructure planning. Stargate and Meta demonstrated the scale of corporate ambition; Amazon illustrated the rising cost and public-infrastructure implications; Abilene showed the importance of financing, pre-leasing, and on-site generation; and projects in Louisville, Toronto, Europe, Asia-Pacific, the Middle East, and Africa showed that growth was spreading beyond traditional data-center hubs.

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The dependable measure of progress, however, is not announced investment. It is delivered, commissioned, and tenant-ready megawatts. Power availability, financing, permitting, cooling, water, labor, equipment, and community acceptance will determine which of February’s ambitious plans become operating facilities.

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