Happy new year, all. 🎉
We’ve got a ton of things in the works for 2024, and I can’t wait to share them with you. Until then, here’s your catch-up on what’s happening in the world of digital infrastructure.

Today’s Newsletter:

• The world’s largest data center project gets one step closer to fruition

• Google partners with geothermal start-up to power its Nevada data center

• Armada unveils plan for its portable Starlink data centers

• What’s more: CoreSite is adding two new data centers, DataBank scores a $533 windfall, HP is buying Juniper Networks

• Hot Links:🌭 Cool graphic showing 50 biggest data center markets

Est. read time: 5mins 32secs

The largest data center project in the world gets approval

The "Digital Gateway Project" in Prince William County, recently approved by the county's Board of Supervisors, heralds a new era in data center development.

Gateway approval

This colossal project, set to be the single largest data center project in the world, will span roughly 2,100 acres near Gainesville, adjacent to the Manassas National Battlefield Park, and include the construction of 37 data centers covering nearly 30 million square feet.

The proposal, which is a partnership between QTS and Compass Data Centers, has been in the making since 2019. It faced a marathon 27-hour meeting earlier this month before receiving approval amidst a significant public debate.

The approval, however, was not without controversy, as it was opposed by conservationists citing concerns over water usage, strain on the regional power grid, and impact on the historical Manassas Battlefield and local residential areas.

Support, benefits

On the flip side, the project garnered support for its potential economic benefits, with projections of generating up to $700 million annually in taxes.
The approval vote witnessed a partisan split, with four Democratic supervisors in favor and three Republican supervisors against the project.

Looking ahead, the Digital Gateway Project stands as a pivotal development for Prince William County, setting it up as a key player in the data center industry. However, it continues to navigate through a sea of challenges, including potential legal hurdles and ongoing opposition from conservation groups and residents.

The developers, Compass and QTS, have expressed their commitment to environmental stewardship, planning measures like runoff treatment systems, and the preservation of open spaces for community recreational use.

Despite the controversies, the project represents a significant step towards economic growth for the county, balancing the act between environmental considerations and community impact.

Armada raises $55 million to build Starlink data centers

Armada, a one-year-old data networking startup, is no longer lurking in the shadows.
With over $55 million in their war chest, they're ambitiously aiming to empower remote devices connected to Starlink, SpaceX's broadband constellation.

Their so-called Galleon data centers, resembling shipping containers, are designed to bring real-time data processing capabilities to locations traditionally disconnected from terrestrial networks. This move could potentially transform oil rigs and battlefields into hubs of advanced computing, including the utilization of AI platforms like ChatGPT.

SpaceX and strategic silence

The startup's strategy hinges on leveraging SpaceX’s satellites for global connectivity, utilizing an operating system tailored for managing multiple Starlink deployments.
Despite the buzz, Armada remains tight-lipped about any direct partnership with SpaceX, adding a layer of mystery to their plans.

The venture is spearheaded by Dan Wright, former CEO of DataRobot, who's navigating Armada’s journey amidst secrecy about its commercial launch and operational specifics.

Based in Bellevue, Washington, the team is positioned near the heart of SpaceX's Starlink satellite production, hinting at strategic proximity.

The funding, led by Founders Fund and supported by Lux Capital, Shield Capital, and 8090 Industries, marks a significant vote of confidence in Armada's vision. However, the company's reluctance to divulge details, including the nature of its relationship with SpaceX, raises questions about its roadmap and readiness for market impact.

Google partnership brings geothermal to the big leagues

Google's collaboration with Fervo Energy, a leader in next-gen geothermal technology, marks a significant step in the tech giant's goal to operate its data centers on 24/7 carbon-free energy by 2030.

Geothermal in Nevada

This partnership is pioneering the use of enhanced geothermal energy to power Google's Nevada data centers, showcasing the potential of geothermal as a legitimate energy source.

Geothermal energy is generated by pumping cold water underground, which is then heated by the earth’s temperature, and then pumped back to the surface.

Fervo's approach includes drilling two horizontal wells and using real-time data to optimize the performance of the geothermal system. These advanced drilling techniques, borrowed from the oil and gas industry, allow Fervo to produce continuous carbon-free energy production, using less land compared to other renewable sources.

This enabled Fervo to harness geothermal energy more efficiently and in previously inaccessible locations.

Their commercial pilot project, Project Red, in northern Nevada, has set new records in enhanced geothermal system output, demonstrating this technology's commercial viability and scalability.

Furthermore, Fervo's advancements in Enhanced Geothermal Systems (EGS) have expanded the potential of geothermal energy. EGS creates new reservoirs in areas with hot rocks (lots of energy) but limited water. This has significantly broadened the geographical scope of geothermal energy deployment.

With an ambitious goal to produce 400 MW by 2028, Fervo's breakthroughs in geothermal technology align well with Google's sustainability objectives.

Google has also recently announced a partnership with Project InnerSpace, a leading non-profit organization dedicated to the global development of geothermal energy, to accelerate the adoption of geothermal energy.

- What’s More -

Databank raised $533m for new data centers

DataBank has successfully raised $533 million through a mix of debt and equity to fund the construction of new data centers, aiming to meet the growing capacity demands driven by AI applications.

This recent financing is part of a larger funding effort for Databank, totaling $1.6 billion in 2023, which includes $715 million from secured notes and a $350 million credit facility.

The latest round consists of $188 million in equity from both existing and new investors, and a $345 million construction loan for ATL4, a new data center in Atlanta set to open in Q3 2024. ATL4 will boast 100% renewable power through solar-based certificates.

Additionally, DataBank recently acquired land in Virginia for a new data center campus and sold its French assets to Etix Everywhere for €63 million.

 Read more here

HP looks to buy networking powerhouse Juniper

Hewlett Packard Enterprise is currently in discussions to acquire Juniper Networks, valuing the network equipment manufacturer at around $14 billion. According to a source familiar with the matter, the public could expect an announcement regarding this significant deal any day.

The potential acquisition has already impacted the stock market, with Hewlett Packard's shares falling by 7.7%, while Juniper's soared by 21% in extended trading.
This move is seen as a strategic effort by HPE to bolster its artificial intelligence offerings, an area that has seen recent expansion with the introduction of AI-focused cloud computing services.

Juniper Networks, renowned for its array of high-performance network and service offerings, including Wi-Fi, AI-enabled networking operations, and software-defined networking technologies, has not immediately responded to requests for comment on the reported deal.

The acquisition would mark a significant step for HPE in enhancing its technology and service portfolio in the rapidly evolving AI and network solutions sector.

Read more here

Coresite to add two new data centers

CoreSite is expanding its data center presence in New Jersey and Colorado, as announced by the American Tower subsidiary.

In New Jersey, the new 'NY3' data center on CoreSite’s New York campus has received final permitting to complete an 85,000-square-foot facility with 15MW of capacity, adjacent to its NY2 facility in Secaucus. The NY3 building is expected to be completed by Q4 2024.

In Denver, CoreSite has gained conceptual approval for a new three-building campus, offering approximately 600,000 square feet and 60MW of capacity. The first facility in this Denver campus will provide 18MW across three stories on a 15-acre site, although specific timelines for completion were not disclosed. CoreSite’s expansion reflects increasing customer demand, particularly due to the rise of AI and high-performance computing applications.

CoreSite currently operates more than 27 data centers across 11 US markets.

Read more here

Hot Links 🌭

That’s it for today. Thanks a lot for reading.

Please let us know how we’re doing by replying directly to this email or sharing it with someone who loves data centers.

- Taylor