Data Center Investment News — 26/09/2025

September 26, 2025

Written by Angela Cáceres, Ensar Alijmi

EcoDataCenter breaks ground on Borlänge, Sweden data center

EcoDataCenter has officially broken ground on a massive new data center campus in Borlänge, Sweden, on land once home to a paper mill. The first phase of the facility will have access to 250MW of energy, with the company noting that the site could eventually scale up to 600MW. The project spans 20 hectares, with construction led by ByggPartner, and the first data centers are targeted to be ready by 2027. EcoDataCenter acquired the site in September 2024 for SEK 400 million ($39m).

Highlighting the transformation of the site, CEO Peter Michelson said: “The site once produced paper – the raw material of the newspaper information age. Now, Borlänge will produce the raw material for AI and the next information age.” The company, founded in 2015, has been expanding rapidly, recently securing $703 million in financing from Deutsche Bank for AI-focused facilities. This groundbreaking in Borlänge marks a major step in EcoDataCenter’s hyperscale pivot following the April 2025 sale of three facilities to CapMan Infra.

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Warburg Pincus and partners break ground on 80MW data center in South Korea

Warburg Pincus, alongside DC Connects and Wide Creek AMC, has broken ground on an 80MW hyperscale data center in Yongin City, just outside Seoul. The 58,000 sqm (624,305 sq ft) facility, branded Soul01, will feature two buildings with six data halls each and advanced cooling systems capable of supporting power densities from 60kW to 200kW. Construction has officially begun, with operations expected by 2027. DC Connects, a new South Korean data center developer backed by Warburg Pincus, is leading the project as part of its expansion strategy in the greater Seoul area.

Highlighting the market’s growth, Dongkun Cho, principal of Warburg Pincus, said: “South Korea represents one of the most compelling markets for next-generation digital infrastructure investment… Partnering with DC Connects and Wide Creek AMC, we are excited to develop a state-of-the-art, 80MW hyperscale data center in Yongin that will deliver reliability, efficiency, and high-density capabilities to meet the evolving needs of global and domestic technology leaders.” Jae Woo Choi, CEO of DC Connects, added: “We are proud to break ground on a strategic asset designed from the ground up to meet growing demand from global and local cloud and AI leaders… Together with our partners, we are committed to building secure, future-ready data centers that support our tenants’ long-term growth.” Wide Creek’s Hosung Lee further emphasized the project’s uniqueness: “Located in southern Greater Seoul, the asset will be the only hyperscale data center expected to be operational in the area within the next three years.”

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Microsoft behind Project Nova data center campus in Caledonia, Wisconsin

Microsoft has been confirmed as the company behind Project Nova, a proposed data center campus in Caledonia, Wisconsin, just south of Milwaukee. The 244-acre site, located west of WE Energies’ Oak Creek coal power plant, could host three data center buildings and a 15-acre electrical substation. While Microsoft hasn’t yet acquired the land, filings have been made through engineering firm Dewberry Engineers, with rezoning still awaiting village approval. Local opposition has already formed under the Stop Project Nova group, with around 30 residents voicing concerns at a recent meeting.

The development comes as Microsoft significantly expands its Wisconsin footprint. The company recently announced an additional $4 billion investment in the state and is preparing to open its three-building Mount Pleasant campus in Racine County, spanning 1.2 million sq ft (111,483 sqm) across 315 acres. With the Oak Creek coal turbines now scheduled to operate until 2026 and Elm Road Generating Station set for conversion to natural gas, Project Nova could further cement the region as a growing hub for hyperscale infrastructure alongside operators like Meta, QTS, and Vantage.

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Alibaba Cloud announces global expansion plans, partners with NVIDIA for AI development

Alibaba Cloud has unveiled bold expansion plans, announcing its first data centers in Brazil, France, and the Netherlands, along with additional sites in Mexico, Japan, South Korea, Malaysia, and Dubai. The company will also open new regional service centers in Indonesia and Germany to strengthen customer support. These moves, revealed at the Apsara Conference 2025, boosted Alibaba’s share price by nearly 10 percent. Currently, Alibaba Cloud operates 91 availability zones across 29 regions worldwide.

Alongside this expansion, Alibaba has partnered with NVIDIA to integrate its advanced AI development tools into Alibaba’s cloud platform. “Our strategic expansion of global infrastructure is designed to cater for the accelerating demand from forward-thinking customers,” said Dr. Feifei Li, President of International Business and SVP of Alibaba Cloud Intelligence Group. The collaboration will focus on robotics, self-driving cars, and smart spaces, while also enabling physical AI capabilities like data synthesis, model training, and simulation testing. This partnership follows NVIDIA’s recent announcement of up to US$100 billion in investment to support OpenAI’s infrastructure with at least 10GW of systems.

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Digital Edge launches data center in Tokyo, Japan

APAC operator Digital Edge, backed by Stonepeak and in partnership with Hulic Co., Ltd., has launched its latest Tokyo facility, TYO7. Located at 7-1 Nihonbashi Kobunacho, less than 300 meters from the company’s TYO2 site, the eight-story data center provides 4.8MW across 2,625 sqm (28,255 sq ft) with room for 970 racks. Plans for TYO7 were first announced in March 2023, with groundbreaking following in June.

“Tokyo is one of the most dynamic digital markets in Asia, where proximity and connectivity matter more than ever,” said John Freeman, CEO of Digital Edge. “With TYO7, we are delivering a network-dense, sustainable, high-performance facility, giving our customers the low-latency access they need to support cloud, AI, and digital transformation – all in the heart of Tokyo’s central business district.” Hulic president Takaya Maeda added: “This facility not only addresses Japan’s growing digital infrastructure requirements but also sets a new standard for environmentally responsible development.” Digital Edge, formed in 2020, now counts around 25 facilities in operation and development across Asia, with more than 1.1GW of secured IT power.

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Savion proposes data center campus in Plano, Illinois

Savion, the Shell-owned renewable energy developer behind the 250MW Plano Skies solar project, has proposed a data center campus in Plano, Illinois, featuring seven buildings with backup generation plus substations tied to the solar facility. The plan has drawn criticism from city officials, with Alderman John Fawver warning: “Now, you’re talking about a permanent structure, and you’re putting that permanent structure in the backyards of the houses… You’re asking us to change zoning for that significantly and put a burden on our residents. And then, where does any of this fit into the city’s comprehensive plan?” In response, Savion’s Anna Chalupa stressed cooperation and economic opportunity, noting: “I understand that there are concerns, and that’s why we are not permitting this right now… this was a way that we felt that the community could receive significant economic benefit and economic opportunity.”

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OpenAI announces five more US Stargate data centers with Oracle and SoftBank

OpenAI has announced plans to build five more data centers across the US as part of its $500 billion Stargate project, pushing the initiative toward “nearly 7GW of planned capacity and over $400 billion in investment over the next three years.” The new sites, developed with Oracle, include Shackelford County, Texas; Doña Ana County, New Mexico; and an undisclosed Midwest location, with expansions also planned at the flagship Abilene, Texas campus. In parallel, SoftBank is backing two additional facilities in Lordstown, Ohio, and Milam County, Texas, with SB Energy providing infrastructure for the latter’s rapid build.

Launched earlier this year with Oracle, SoftBank, and Abu Dhabi’s MGX, Stargate aims to deliver 10GW of compute capacity by 2025 to meet OpenAI’s growing infrastructure needs. CEO Sam Altman highlighted the urgency of scaling: “AI can only fulfill its promise if we build the compute to power it. That compute is the key to ensuring everyone can benefit from AI and to unlocking future breakthroughs. We’re already making historic progress toward that goal through Stargate and moving quickly not just to meet its initial commitment, but to lay the foundation for what comes next.”

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Vantage files to build second San Antonio data center in Texas

Vantage Data Centers has filed plans to develop its second facility in San Antonio, Texas, with a new 96MW, two-story building spanning 432,800 sq ft at its TX1 campus on Omicron Drive. The $276.8 million project, designed by Jacobs, is slated to begin construction in October 2025 and run through August 2027.

The filing follows Vantage’s earlier TX11 project at the same campus, a 32MW facility due to go live in early 2026. Vantage has also acquired additional land in San Antonio near State Highway 151 and Wiseman Boulevard, positioning itself among other major players like Microsoft, Amazon, CloudHQ, CyrusOne, and QTS expanding their presence in the area.

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Stream files to build 48MW data center in Dallas, Texas

Stream Data Centers is set to expand in Dallas with a $300 million investment into a new 48MW, two-story data center at its Wilmer II Hyperscale Campus. The project, located at 930 N Sunrise Road in Wilmer, will span 360,750 sq ft and is scheduled to run from April 2026 to October 2027. At full build-out, the 140-acre campus could support 240MW and 1.4 million sq ft, powered by a 372MW Oncor substation.

Meanwhile, Evocative has filed for a $30 million upgrade of its DAL6 facility in Plano, with renovations planned from September 2025 through February 2027. The 55,000 sq ft site, expandable to 11MW, will see mechanical and electrical upgrades including new chillers, generators, and UPS systems, reinforcing Evocative’s presence in the Dallas data center market.

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Meta in talks to sign $20bn Oracle cloud deal – report

Meta is reportedly in talks to sign a multi-year cloud contract with Oracle worth around $20 billion, according to Reuters. The deal would support Meta’s growing AI training and inference workloads, complementing its own massive infrastructure projects, including a 1GW data center campus and a planned 5GW site. The company has forecast $66–72 billion in capex for 2025, with expectations to ramp up “significantly” in 2026, and recently signed a $10 billion, six-year deal with Google Cloud.

Oracle continues to secure major contracts amid the AI boom, with OpenAI, TikTok, Temu, and xAI already on its client list. OpenAI’s $300 billion agreement over five years is considered the largest cloud contract in history. With Meta CEO Mark Zuckerberg pledging to invest “hundreds of billions of dollars into compute” to pursue superintelligence, a potential Oracle deal would further solidify the cloud provider’s role at the center of AI infrastructure demand.

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Plans filed for 1GW data center campus in Sydney, Australia

A AU$5 billion (US$3.3bn) plan has been filed for a gigawatt-scale data center campus in Sydney’s Kemps Creek area. The proposal, known as the Mamre Road Data Centre Campus, outlines six four-story buildings totaling 400,000 sqm (4.3 million sq ft) with capacity ranging from 600MW to 1GW across 24 data halls. The 52-hectare site would include nearly 1,000 cooling units, 852 diesel backup generators, and space for more than 7,400 lithium-ion battery cabinets, alongside up to four substations.

The site at 706–752 Mamre Road is owned by ISPT and marketed as Summit, a masterplanned 52-hectare industrial estate. ISPT, backed by Australian superannuation funds, has a property portfolio worth AU$20.4 billion (US$13bn). The group is separately developing a large warehouse and logistics hub at the same park and has previously filed data center plans in North Ryde. Microsoft is also developing a data center campus in Kemps Creek, underscoring the area’s growing importance as a digital infrastructure hub.

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Equinix opens its first data center in Chennai, India

Equinix has officially opened its first data center in Chennai, India. The $69 million CN1 facility, located in Siruseri on a six-acre plot, debuts with 800 cabinets but is designed to scale up to 4,250 cabinets in future phases. CN1 will be directly connected to Equinix’s established Mumbai campus, which currently houses three facilities and will expand with MB3 in 2026.

“We are delighted to announce the launch of our high-performance IBX data center, CN1, in Chennai, marking Equinix’s expansion in India and a pivotal step in advancing the nation’s digitalization journey,” said Manoj Paul, managing director of India, Equinix. The company emphasized its goal of extending its interconnected ecosystem of cloud, carrier, and enterprise partners from Mumbai to Tamil Nadu, further strengthening India’s role as a global technology hub.

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Tract acquires 1,000 acres in Nevada for 1.6GW data center park

Rowan Digital Infrastructure has secured $1.2 billion in financing to accelerate its data center expansion, with the majority of funds directed toward its flagship Bauxite campus in Maryland. The company raised $925 million for the third phase of Bauxite — bringing total debt for the site to more than $3.1 billion — under its newly established Green Finance Framework. An additional $300 million corporate credit facility, led by Apterra and other investors, will support Rowan’s early-stage development projects.

“These major milestones reflect the market’s confidence in Rowan’s ability to deliver both financial and sustainability performance at the scale our hyperscale customers need right now,” said Charley Daitch, CEO of Rowan. Established in 2021, Rowan is also developing a 300MW campus in Texas and a four-building site in Oregon, reinforcing its position as a rising force in sustainable hyperscale data centers.

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Tract acquires 1,000 acres in Nevada for 1.6GW data center park

Tract has acquired 1,060 acres near Silver Springs in Lyon County, Nevada, to develop a 1.6GW data center park, with 700MW already under utility study. “We appreciate the collaboration and thoughtful planning by Lyon County to make this a successful and smooth process,” said Graham Williams, CIO at Tract Capital. The deal expands Tract’s Nevada presence beyond its 2,200-acre Storey County park, where it controls over 11,000 acres and ~2GW of capacity, despite an ongoing legal dispute with Switch.

Founded by former Cologix CEO Grant van Rooyen, Tract focuses on preparing master-planned, shovel-ready data center parks. Lyon County officials welcomed the investment as a driver of jobs and long-term economic growth. Tract is also eyeing large-scale campuses in Texas, Virginia, Arizona, Minnesota, Iowa, Utah, and Illinois, while its new subsidiary, Fleet DC, will directly develop projects on Tract-owned and third-party sites.

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