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A full day’s work for Dora Manriquez, who drives for Uber and Lyft in the San Francisco Bay Area, includes waiting in her car for a two-digit number to appear. The apps keep sending her rides that are too cheap to pay for her time—$4 or $7 for a trip across San Francisco, $16 for a trip from the airport for which the customer is charged $100. But Manriquez can’t wait too long to accept a ride, because her acceptance rate contributes to her driving score for both companies, which can then affect the benefits and discounts she has access to.  The systems are black boxes, and Manriquez can’t know for sure which data points affect the offers she receives or how. But what she does know is that she’s driven for ride-share companies for the last nine years, and this year, having found herself unable to score enough better-­paying rides, she has to file for bankruptcy.  Every action Manriquez takes—or doesn’t take—is logged by the apps she must use to work for these companies. (An Uber spokesperson told MIT Technology Review that acceptance rates don’t affect drivers’ fares. Lyft did not return a request for comment on the record.) But app-based employers aren’t the only ones keeping a very close eye on workers today. A study conducted in 2021, when the covid-19 pandemic had greatly increased the number of people working from home, revealed that almost 80% of companies surveyed were monitoring their remote or hybrid workers. A New York Times investigation in 2022 found that eight of the 10 largest private companies in the US track individual worker productivity metrics, many in real time. Specialized software can now measure and log workers’ online activities, physical location, and even behaviors like which keys they tap and what tone they use in their written communications—and many workers aren’t even aware that this is happening. What’s more, required work apps on personal devices may have access to more than just work—and as we may know from our private lives, most technology can become surveillance technology if the wrong people have access to the data. While there are some laws in this area, those that protect privacy for workers are fewer and patchier than those applying to consumers. Meanwhile, it’s predicted that the global market for employee monitoring software will reach $4.5 billion by 2026, with North America claiming the dominant share. Working today—whether in an office, a warehouse, or your car—can mean constant electronic surveillance with little transparency, and potentially with livelihood-­ending consequences if your productivity flags. What matters even more than the effects of this ubiquitous monitoring on privacy may be how all that data is shifting the relationships between workers and managers, companies and their workforce. Managers and management consultants are using worker data, individually and in the aggregate, to create black-box algorithms that determine hiring and firing, promotion and “deactivation.” And this is laying the groundwork for the automation of tasks and even whole categories of labor on an endless escalator to optimized productivity. Some human workers are already struggling to keep up with robotic ideals. We are in the midst of a shift in work and workplace relationships as significant as the Second Industrial Revolution of the late 19th and early 20th centuries. And new policies and protections may be necessary to correct the balance of power. Data as power Data has been part of the story of paid work and power since the late 19th century, when manufacturing was booming in the US and a rise in immigration meant cheap and plentiful labor. The mechanical engineer Frederick Winslow Taylor, who would become one of the first management consultants, created a strategy called “scientific management” to optimize production by tracking and setting standards for worker performance. Soon after, Henry Ford broke down the auto manufacturing process into mechanized steps to minimize the role of individual skill and maximize the number of cars that could be produced each day. But the transformation of workers into numbers has a longer history. Some researchers see a direct line between Taylor’s and Ford’s unrelenting focus on efficiency and the dehumanizing labor optimization practices carried out on slave-owning plantations.  As manufacturers adopted Taylorism and its successors, time was replaced by productivity as the measure of work, and the power divide between owners and workers in the United States widened. But other developments soon helped rebalance the scales. In 1914, Section 6 of the Clayton Act established the federal legal right for workers to unionize and stated that “the labor of a human being is not a commodity.” In the years that followed, union membership grew, and the 40-hour work week and the minimum wage were written into US law. Though the nature of work had changed with revolutions in technology and management strategy, new frameworks and guardrails stood up to meet that change. More than a hundred years after Taylor published his seminal book, The Principles of Scientific Management, “efficiency” is still a business buzzword, and technological developments, including new uses of data, have brought work to another turning point. But the federal minimum wage and other worker protections haven’t kept up, leaving the power divide even starker. In 2023, CEO pay was 290 times average worker pay, a disparity that’s increased more than 1,000% since 1978. Data may play the same kind of intermediary role in the boss-worker relationship that it has since the turn of the 20th century, but the scale has exploded. And the stakes can be a matter of physical health. In 2024, a report from a Senate committee led by Bernie Sanders, based on an 18-month investigation of Amazon’s warehouse practices, found that the company had been setting the pace of work in those facilities with black-box algorithms, presumably calibrated with data collected by monitoring employees. (In California, because of a 2021 bill, Amazon is required to at least reveal the quotas and standards workers are expected to comply with; elsewhere the bar can remain a mystery to the very people struggling to meet it.) The report also found that in each of the previous seven years, Amazon workers had been almost twice as likely to be injured as other warehouse workers, with injuries ranging from concussions to torn rotator cuffs to long-term back pain. An internal team tasked with evaluating Amazon warehouse safety found that letting robots set the pace for human labor was correlated with subsequent injuries. The Sanders report found that between 2020 and 2022, two internal Amazon teams tasked with evaluating warehouse safety recommended reducing the required pace of work and giving workers more time off. Another found that letting robots set the pace for human labor was correlated with subsequent injuries. The company rejected all the recommendations for technical or productivity reasons. But the report goes on to reveal that in 2022, another team at Amazon, called Core AI, also evaluated warehouse safety and concluded that unrealistic pacing wasn’t the reason all those workers were getting hurt on the job. Core AI said that the cause, instead, was workers’ “frailty” and “intrinsic likelihood of injury.” The issue was the limitations of the human bodies the company was measuring, not the pressures it was subjecting those bodies to. Amazon stood by this reasoning during the congressional investigation. Amazon spokesperson Maureen Lynch Vogel told MIT Technology Review that the Sanders report is “wrong on the facts” and that the company continues to reduce incident rates for accidents. “The facts are,” she said, “our expectations for our employees are safe and ­reasonable—and that was validated both by a judge in Washington after a thorough hearing and by the state’s Board of Industrial Insurance Appeals.” A study conducted in 2021 revealed that almost 80% of companies surveyed were monitoring their remote or hybrid workers. Yet this line of thinking is hardly unique to Amazon, although the company could be seen as a pioneer in the datafication of work. (An investigation found that over one year between 2017 and 2018, the company fired hundreds of workers at a single facility—by means of automatically generated letters—for not meeting productivity quotas.) An AI startup recently placed a series of billboards and bus signs in the Bay Area touting the benefits of its automated sales agents, which it calls “Artisans,” over human workers. “Artisans won’t complain about work-life balance,” one said. “Artisans won’t come into work ­hungover,” claimed another. “Stop hiring humans,” one hammered home. The startup’s leadership took to the company blog to say that the marketing campaign was intentionally provocative and that Artisan believes in the potential of human labor. But the company also asserted that using one of its AI agents costs 96% less than hiring a human to do the same job. The campaign hit a nerve: When data is king, humans—whether warehouse laborers or knowledge workers—may not be able to outperform machines. AI management and managing AI Companies that use electronic employee monitoring report that they are most often looking to the technologies not only to increase productivity but also to manage risk. And software like Teramind offers tools and analysis to help with both priorities. While Teramind, a globally distributed company, keeps its list of over 10,000 client companies private, it provides resources for the financial, health-care, and customer service industries, among others—some of which have strict compliance requirements that can be tricky to keep on top of. The platform allows clients to set data-driven standards for productivity, establish thresholds for alerts about toxic communication tone or language, create tracking systems for sensitive file sharing, and more. 

A full day’s work for Dora Manriquez, who drives for Uber and Lyft in the San Francisco Bay Area, includes waiting in her car for a two-digit number to appear. The apps keep sending her rides that are too cheap to pay for her time—$4 or $7 for a trip across San Francisco, $16 for a trip from the airport for which the customer is charged $100. But Manriquez can’t wait too long to accept a ride, because her acceptance rate contributes to her driving score for both companies, which can then affect the benefits and discounts she has access to. 

The systems are black boxes, and Manriquez can’t know for sure which data points affect the offers she receives or how. But what she does know is that she’s driven for ride-share companies for the last nine years, and this year, having found herself unable to score enough better-­paying rides, she has to file for bankruptcy. 

Every action Manriquez takes—or doesn’t take—is logged by the apps she must use to work for these companies. (An Uber spokesperson told MIT Technology Review that acceptance rates don’t affect drivers’ fares. Lyft did not return a request for comment on the record.) But app-based employers aren’t the only ones keeping a very close eye on workers today.

A study conducted in 2021, when the covid-19 pandemic had greatly increased the number of people working from home, revealed that almost 80% of companies surveyed were monitoring their remote or hybrid workers. A New York Times investigation in 2022 found that eight of the 10 largest private companies in the US track individual worker productivity metrics, many in real time. Specialized software can now measure and log workers’ online activities, physical location, and even behaviors like which keys they tap and what tone they use in their written communications—and many workers aren’t even aware that this is happening.

What’s more, required work apps on personal devices may have access to more than just work—and as we may know from our private lives, most technology can become surveillance technology if the wrong people have access to the data. While there are some laws in this area, those that protect privacy for workers are fewer and patchier than those applying to consumers. Meanwhile, it’s predicted that the global market for employee monitoring software will reach $4.5 billion by 2026, with North America claiming the dominant share.

Working today—whether in an office, a warehouse, or your car—can mean constant electronic surveillance with little transparency, and potentially with livelihood-­ending consequences if your productivity flags. What matters even more than the effects of this ubiquitous monitoring on privacy may be how all that data is shifting the relationships between workers and managers, companies and their workforce. Managers and management consultants are using worker data, individually and in the aggregate, to create black-box algorithms that determine hiring and firing, promotion and “deactivation.” And this is laying the groundwork for the automation of tasks and even whole categories of labor on an endless escalator to optimized productivity. Some human workers are already struggling to keep up with robotic ideals.

We are in the midst of a shift in work and workplace relationships as significant as the Second Industrial Revolution of the late 19th and early 20th centuries. And new policies and protections may be necessary to correct the balance of power.

Data as power

Data has been part of the story of paid work and power since the late 19th century, when manufacturing was booming in the US and a rise in immigration meant cheap and plentiful labor. The mechanical engineer Frederick Winslow Taylor, who would become one of the first management consultants, created a strategy called “scientific management” to optimize production by tracking and setting standards for worker performance.

Soon after, Henry Ford broke down the auto manufacturing process into mechanized steps to minimize the role of individual skill and maximize the number of cars that could be produced each day. But the transformation of workers into numbers has a longer history. Some researchers see a direct line between Taylor’s and Ford’s unrelenting focus on efficiency and the dehumanizing labor optimization practices carried out on slave-owning plantations. 

As manufacturers adopted Taylorism and its successors, time was replaced by productivity as the measure of work, and the power divide between owners and workers in the United States widened. But other developments soon helped rebalance the scales. In 1914, Section 6 of the Clayton Act established the federal legal right for workers to unionize and stated that “the labor of a human being is not a commodity.” In the years that followed, union membership grew, and the 40-hour work week and the minimum wage were written into US law. Though the nature of work had changed with revolutions in technology and management strategy, new frameworks and guardrails stood up to meet that change.

More than a hundred years after Taylor published his seminal book, The Principles of Scientific Management, “efficiency” is still a business buzzword, and technological developments, including new uses of data, have brought work to another turning point. But the federal minimum wage and other worker protections haven’t kept up, leaving the power divide even starker. In 2023, CEO pay was 290 times average worker pay, a disparity that’s increased more than 1,000% since 1978. Data may play the same kind of intermediary role in the boss-worker relationship that it has since the turn of the 20th century, but the scale has exploded. And the stakes can be a matter of physical health.

A humanoid robot with folded arms looms over human workers at an Amazon Warehouse

In 2024, a report from a Senate committee led by Bernie Sanders, based on an 18-month investigation of Amazon’s warehouse practices, found that the company had been setting the pace of work in those facilities with black-box algorithms, presumably calibrated with data collected by monitoring employees. (In California, because of a 2021 bill, Amazon is required to at least reveal the quotas and standards workers are expected to comply with; elsewhere the bar can remain a mystery to the very people struggling to meet it.) The report also found that in each of the previous seven years, Amazon workers had been almost twice as likely to be injured as other warehouse workers, with injuries ranging from concussions to torn rotator cuffs to long-term back pain.

An internal team tasked with evaluating Amazon warehouse safety found that letting robots set the pace for human labor was correlated with subsequent injuries.

The Sanders report found that between 2020 and 2022, two internal Amazon teams tasked with evaluating warehouse safety recommended reducing the required pace of work and giving workers more time off. Another found that letting robots set the pace for human labor was correlated with subsequent injuries. The company rejected all the recommendations for technical or productivity reasons. But the report goes on to reveal that in 2022, another team at Amazon, called Core AI, also evaluated warehouse safety and concluded that unrealistic pacing wasn’t the reason all those workers were getting hurt on the job. Core AI said that the cause, instead, was workers’ “frailty” and “intrinsic likelihood of injury.” The issue was the limitations of the human bodies the company was measuring, not the pressures it was subjecting those bodies to. Amazon stood by this reasoning during the congressional investigation.

Amazon spokesperson Maureen Lynch Vogel told MIT Technology Review that the Sanders report is “wrong on the facts” and that the company continues to reduce incident rates for accidents. “The facts are,” she said, “our expectations for our employees are safe and ­reasonable—and that was validated both by a judge in Washington after a thorough hearing and by the state’s Board of Industrial Insurance Appeals.”

A study conducted in 2021 revealed that almost 80% of companies surveyed were monitoring their remote or hybrid workers.

Yet this line of thinking is hardly unique to Amazon, although the company could be seen as a pioneer in the datafication of work. (An investigation found that over one year between 2017 and 2018, the company fired hundreds of workers at a single facility—by means of automatically generated letters—for not meeting productivity quotas.) An AI startup recently placed a series of billboards and bus signs in the Bay Area touting the benefits of its automated sales agents, which it calls “Artisans,” over human workers. “Artisans won’t complain about work-life balance,” one said. “Artisans won’t come into work ­hungover,” claimed another. “Stop hiring humans,” one hammered home.

The startup’s leadership took to the company blog to say that the marketing campaign was intentionally provocative and that Artisan believes in the potential of human labor. But the company also asserted that using one of its AI agents costs 96% less than hiring a human to do the same job. The campaign hit a nerve: When data is king, humans—whether warehouse laborers or knowledge workers—may not be able to outperform machines.

AI management and managing AI

Companies that use electronic employee monitoring report that they are most often looking to the technologies not only to increase productivity but also to manage risk. And software like Teramind offers tools and analysis to help with both priorities. While Teramind, a globally distributed company, keeps its list of over 10,000 client companies private, it provides resources for the financial, health-care, and customer service industries, among others—some of which have strict compliance requirements that can be tricky to keep on top of. The platform allows clients to set data-driven standards for productivity, establish thresholds for alerts about toxic communication tone or language, create tracking systems for sensitive file sharing, and more. 

a person laying in the sidewalk next to a bus sign reading,

MICHAEL BYERS

Electronic monitoring and management are also changing existing job functions in real time. Teramind’s clients must figure out who at their company will handle and make decisions around employee data. Depending on the type of company and its needs, Osipova says, that could be HR, IT, the executive team, or another group entirely—and the definitions of those roles will change with these new responsibilities. 

Workers’ tasks, too, can shift with updated technology, sometimes without warning. In 2020, when a major hospital network piloted using robots to clean rooms and deliver food to patients, Criscitiello heard from SEIU-UHW members that they were confused about how to work alongside them. Workers certainly hadn’t received any training for that. “It’s not ‘We’re being replaced by robots,’” says Criscitiello. “It’s ‘Am I going to be responsible if somebody has a medical event because the wrong tray was delivered? I’m supervising the robot—it’s on my floor.’” 

A New York Times investigation in 2022 found that eight of the 10 largest US private companies track individual worker productivity metrics, often in real time.

Nurses are also seeing their jobs expand to include technology management. Carmen Comsti of National Nurses United, the largest nurses’ union in the country, says that while management isn’t explicitly saying nurses will be disciplined for errors that occur as algorithmic tools like AI transcription systems or patient triaging mechanisms are integrated into their workflows, that’s functionally how it works. “If a monitor goes off and the nurse follows the algorithm and it’s incorrect, the nurse is going to get blamed for it,” Comsti says. Nurses and their unions don’t have access to the inner workings of the algorithms, so it’s impossible to say what data these or other tools have been trained on, or whether the data on how nurses work today will be used to train future algorithmic tools. What it means to be a worker, manager, or even colleague is on shifting ground, and frontline workers don’t have insight into which way it’ll move next.

The state of the law and the path to protection

Today, there isn’t much regulation on how companies can gather and use workers’ data. While the General Data Protection Regulation (GDPR) offers some worker protections in Europe, no US federal laws consistently shield workers’ privacy from electronic monitoring or establish firm guardrails for the implementation of algorithm-driven management strategies that draw on the resulting data. (The Electronic Communications Privacy Act allows employers to monitor employees if there are legitimate business reasons and if the employee has already given consent through a contract; tracking productivity can qualify as a legitimate business reason.)

But in late 2024, the Consumer Financial Protection Bureau did issue guidance warning companies using algorithmic scores or surveillance-based reports that they must follow the Fair Credit Reporting Act—which previously applied only to consumers—by getting workers’ consent and offering transparency into what data was being collected and how it would be used. And the Biden administration’s Blueprint for an AI Bill of Rights had suggested that the enumerated rights should apply in employment contexts. But none of these are laws.

So far, binding regulation is being introduced state by state. In 2023, the California Consumer Privacy Act (CCPA) was officially extended to include workers and not just consumers in its protections, even though workers had been specifically excluded when the act was first passed. That means California workers now have the right to know what data is being collected about them and for what purpose, and they can ask to correct or delete that data. Other states are working on their own measures. But with any law or guidance, whether at the federal or state level, the reality comes down to enforcement. Criscitiello says SEIU is testing out the new CCPA protections. 

“It’s too early to tell, but my conclusion so far is that the onus is on the workers,” she says. “Unions are trying to fill this function, but there’s no organic way for a frontline worker to know how to opt out [of data collection], or how to request data about what’s being collected by their employer. There’s an education gap about that.” And while CCPA covers the privacy aspect of electronic monitoring, it says nothing about how employers can use any collected data for management purposes.

The push for new protections and guardrails is coming in large part from organized labor. Unions like National Nurses United and SEIU are working with legislators to create policies on workers’ rights in the face of algorithmic management. And app-based ­advocacy groups have been pushing for new minimum pay rates and against wage theft—and winning. There are other successes to be counted already, too. One has to do with electronic visit verification (EVV), a system that records information about in-home visits by health-care providers. The 21st Century Cures Act, signed into law in 2016, required all states to set up such systems for Medicaid-funded home health care. The intent was to create accountability and transparency to better serve patients, but some health-care workers in California were concerned that the monitoring would be invasive and disruptive for them and the people in their care.

Brandi Wolf, the statewide policy and research director for SEIU’s long-term-care workers, says that in collaboration with disability rights and patient advocacy groups, the union was able to get language into legislation passed in the 2017–2018 term that would take effect the next fiscal year. It indicated to the federal government that California would be complying with the requirement, but that EVV would serve mainly a timekeeping function, not a management or disciplinary one.

Today advocates say that individual efforts to push back against or evade electronic monitoring are not enough; the technology is too widespread and the stakes too high. The power imbalances and lack of transparency affect workers across industries and sectors—from contract drivers to unionized hospital staff to well-compensated knowledge workers. What’s at issue, says Minsu Longiaru, a senior staff attorney at PowerSwitch Action, a network of grassroots labor organizations, is our country’s “moral economy of work”—that is, an economy based on human values and not just capital. Longiaru believes there’s an urgent need for a wave of socially protective policies on the scale of those that emerged out of the labor movement in the early 20th century. “We’re at a crucial moment right now where as a society, we need to draw red lines in the sand where we can clearly say just because we can do something technological doesn’t mean that we should do it,” she says. 

Like so many technological advances that have come before, electronic monitoring and the algorithmic uses of the resulting data are not changing the way we work on their own. The people in power are flipping those switches. And shifting the balance back toward workers may be the key to protecting their dignity and agency as the technology speeds ahead. “When we talk about these data issues, we’re not just talking about technology,” says Longiaru. “We spend most of our lives in the workplace. This is about our human rights.” 

Rebecca Ackermann is a writer, designer, and artist based in San Francisco.

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Lukoil Dissolves International Board

Russian energy giant Lukoil PJSC dissolved the supervisory board of its international business, the latest sign of how US sanctions — the first of which begin on Friday — are affecting the firm. As part of the dissolution, the Moscow-based firm “recalled” Sergei Kochkurov, chief executive officer of the parent company, as well as Evgeny Khavkin and Gennady Fedotov. The step, taken during an Oct. 28 board meeting, was posted by Lukoil International GmbH on Austria’s corporate register on Friday.  The US Treasury’s Office of Foreign Assets Control announced on Oct. 22 that it was sanctioning Lukoil and fellow Russian giant Rosneft PJSC. The measures start today although some actions against Lukoil assets have been delayed until Dec. 13. The move stressed the firm globally: Russian oil prices plunged, its international trading business Litasco has shed staff and wound up at least some operations. Lukoil’s share of revenue from the West Qurna 2 oil field in Iraq has been frozen by Baghdad and western suitors are circling the firm’s global assets. The decision to dissolve the board and recall Lukoil International’s overseers will leave the company’s managing director Alexander Matytsyn in charge. The company is still fully owned by Lukoil. On Wednesday, the Vienna-based unit also published its fully audited group report for 2022 — taking about two years longer than normal to do so. The move offered a first detailed view of how the company fared in the first year of Russia’s invasion of Ukraine. According to those accounts, completed by KPMG on Oct. 9 this year, Lukoil International booked €95 billion of revenue and a net income of €7.8 billion in 2022 — a period that reflected the height of the European energy crisis. Some of the world’s largest energy companies, including Exxon Mobil Corp., Chevron Corp. and

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Microsoft’s Fairwater Atlanta and the Rise of the Distributed AI Supercomputer

Microsoft’s second Fairwater data center in Atlanta isn’t just “another big GPU shed.” It represents the other half of a deliberate architectural experiment: proving that two massive AI campuses, separated by roughly 700 miles, can operate as one coherent, distributed supercomputer. The Atlanta installation is the latest expression of Microsoft’s AI-first data center design: purpose-built for training and serving frontier models rather than supporting mixed cloud workloads. It links directly to the original Fairwater campus in Wisconsin, as well as to earlier generations of Azure AI supercomputers, through a dedicated AI WAN backbone that Microsoft describes as the foundation of a “planet-scale AI superfactory.” Inside a Fairwater Site: Preparing for Multi-Site Distribution Efficient multi-site training only works if each individual site behaves as a clean, well-structured unit. Microsoft’s intra-site design is deliberately simplified so that cross-site coordination has a predictable abstraction boundary—essential for treating multiple campuses as one distributed AI system. Each Fairwater installation presents itself as a single, flat, high-regularity cluster: Up to 72 NVIDIA Blackwell GPUs per rack, using GB200 NVL72 rack-scale systems. NVLink provides the ultra-low-latency, high-bandwidth scale-up fabric within the rack, while the Spectrum-X Ethernet stack handles scale-out. Each rack delivers roughly 1.8 TB/s of GPU-to-GPU bandwidth and exposes a multi-terabyte pooled memory space addressable via NVLink—critical for large-model sharding, activation checkpointing, and parallelism strategies. Racks feed into a two-tier Ethernet scale-out network offering 800 Gbps GPU-to-GPU connectivity with very low hop counts, engineered to scale to hundreds of thousands of GPUs without encountering the classic port-count and topology constraints of traditional Clos fabrics. Microsoft confirms that the fabric relies heavily on: SONiC-based switching and a broad commodity Ethernet ecosystem to avoid vendor lock-in and accelerate architectural iteration. Custom network optimizations, such as packet trimming, packet spray, high-frequency telemetry, and advanced congestion-control mechanisms, to prevent collective

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Land & Expand: Hyperscale, AI Factory, Megascale

Land & Expand is Data Center Frontier’s periodic roundup of notable North American data center development activity, tracking the newest sites, land plays, retrofits, and hyperscale campus expansions shaping the industry’s build cycle. October delivered a steady cadence of announcements, with several megascale projects advancing from concept to commitment. The month was defined by continued momentum in OpenAI and Oracle’s Stargate initiative (now spanning multiple U.S. regions) as well as major new investments from Google, Meta, DataBank, and emerging AI cloud players accelerating high-density reuse strategies. The result is a clearer picture of how the next wave of AI-first infrastructure is taking shape across the country. Google Begins $4B West Memphis Hyperscale Buildout Google formally broke ground on its $4 billion hyperscale campus in West Memphis, Arkansas, marking the company’s first data center in the state and the anchor for a new Mid-South operational hub. The project spans just over 1,000 acres, with initial site preparation and utility coordination already underway. Google and Entergy Arkansas confirmed a 600 MW solar generation partnership, structured to add dedicated renewable supply to the regional grid. As part of the launch, Google announced a $25 million Energy Impact Fund for local community affordability programs and energy-resilience improvements—an unusually early community-benefit commitment for a first-phase hyperscale project. Cooling specifics have not yet been made public. Water sourcing—whether reclaimed, potable, or hybrid seasonal mode—remains under review, as the company finalizes environmental permits. Public filings reference a large-scale onsite water treatment facility, similar to Google’s deployments in The Dalles and Council Bluffs. Local governance documents show that prior to the October announcement, West Memphis approved a 30-year PILOT via Groot LLC (Google’s land assembly entity), with early filings referencing a typical placeholder of ~50 direct jobs. At launch, officials emphasized hundreds of full-time operations roles and thousands

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The New Digital Infrastructure Geography: Green Street’s David Guarino on AI Demand, Power Scarcity, and the Next Phase of Data Center Growth

As the global data center industry races through its most frenetic build cycle in history, one question continues to define the market’s mood: is this the peak of an AI-fueled supercycle, or the beginning of a structurally different era for digital infrastructure? For Green Street Managing Director and Head of Global Data Center and Tower Research David Guarino, the answer—based firmly on observable fundamentals—is increasingly clear. Demand remains blisteringly strong. Capital appetite is deepening. And the very definition of a “data center market” is shifting beneath the industry’s feet. In a wide-ranging discussion with Data Center Frontier, Guarino outlined why data centers continue to stand out in the commercial real estate landscape, how AI is reshaping underwriting and development models, why behind-the-meter power is quietly reorganizing the U.S. map, and what Green Street sees ahead for rents, REITs, and the next wave of hyperscale expansion. A ‘Safe’ Asset in an Uncertain CRE Landscape Among institutional investors, the post-COVID era was the moment data centers stepped decisively out of “niche” territory. Guarino notes that pandemic-era reliance on digital services crystallized a structural recognition: data centers deliver stable, predictable cash flows, anchored by the highest-credit tenants in global real estate. Hyperscalers today dominate new leasing and routinely sign 15-year (or longer) contracts, a duration largely unmatched across CRE categories. When compared with one-year apartment leases, five-year office leases, or mall anchor terms, the stability story becomes plain. “These are AAA-caliber companies signing the longest leases in the sector’s history,” Guarino said. “From a real estate point of view, that combination of tenant quality and lease duration continues to position the asset class as uniquely durable.” And development returns remain exceptional. Even without assuming endless AI growth, the math works: strong demand, rising rents, and high-credit tenants create unusually predictable performance relative to

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The Flexential Blueprint: New CEO Ryan Mallory on Power, AI, and Bending the Physics Curve

In a coordinated leadership transition this fall, Ryan Mallory has stepped into the role of CEO at Flexential, succeeding Chris Downie. The move, described as thoughtful and planned, signals not a shift in direction, but a reinforcement of the company’s core strategy, with a sharpened focus on the unprecedented opportunities presented by the artificial intelligence revolution. In an exclusive interview on the Data Center Frontier Show Podcast, Mallory outlined a confident vision for Flexential, positioning the company at the critical intersection of enterprise IT and next-generation AI infrastructure. “Flexential will continue to focus on being an industry and market leader in wholesale, multi-tenant, and interconnection capabilities,” Mallory stated, affirming the company’s foundational strengths. His central thesis is that the AI infrastructure boom is not a monolithic wave, but a multi-stage evolution where Flexential’s model is uniquely suited for the emerging “inference edge.” The AI Build Cycle: A Three-Act Play Mallory frames the AI infrastructure market as a three-stage process, each lasting roughly four years. We are currently at the tail end of Stage 1, which began with the ChatGPT explosion three years ago. This phase, characterized by a frantic rush for capacity, has led to elongated lead times for critical infrastructure like generators, switchgear, and GPUs. The capacity from this initial build-out is expected to come online between late 2025 and late 2026. Stage 2, beginning around 2026 and stretching to 2030, will see the next wave of builds, with significant capacity hitting the market in 2028-2029. “This stage will reveal the viability of AI and actual consumption models,” Mallory notes, adding that air-cooled infrastructure will still dominate during this period. Stage 3, looking ahead to the early 2030s, will focus on long-term scale, mirroring the evolution of the public cloud. For Mallory, the enduring nature of this build cycle—contrasted

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Centersquare Launches $1 Billion Expansion to Scale an AI-Ready North American Data Center Platform

A Platform Built for Both Colo and AI Density The combined Evoque–Cyxtera platform entered the market with hundreds of megawatts of installed capacity and a clear runway for expansion. That scale positioned Centersquare to offer both traditional enterprise colocation and the higher-density, AI-ready footprints increasingly demanded through 2024 and 2025. The addition of these ten facilities demonstrates that the consolidation strategy is gaining traction, giving the platform more owned capacity to densify and more regional optionality as AI deployment accelerates. What’s in the $1 Billion Package — and Why It Matters 1) Lease-to-Own Conversions in Boston & Minneapolis Centersquare’s decision to purchase two long-operated but previously leased sites in Boston and Minneapolis reduces long-term occupancy risk and gives the operator full capex control. Owning the buildings unlocks the ability to schedule power and cooling upgrades on Centersquare’s terms, accelerate retrofits for high-density AI aisles, deploy liquid-ready thermal topologies, and add incremental power blocks without navigating landlord approval cycles. This structural flexibility aligns directly with the platform’s “AI-era backbone” positioning. 2) Eight Additional Data Centers Across Six Metros The acquisitions broaden scale in fast-rising secondary markets—Tulsa, Nashville, Raleigh—while deepening Centersquare’s presence in Dallas and expanding its Canadian footprint in Toronto and Montréal. Dallas remains a core scaling hub, but Nashville and Raleigh are increasingly important for enterprises modernizing their stacks and deploying regional AI workloads at lower cost and with faster timelines than congested Tier-1 corridors. Tulsa provides a network-adjacent, cost-efficient option for disaster recovery, edge aggregation, and latency-tolerant compute. In Canada, Toronto and Montréal offer strong enterprise demand, attractive economics, and grid advantages—including Québec’s hydro-powered, low-carbon energy mix—that position them well for AI training spillover and inference workloads requiring reliable, competitively priced power. 3) Self-Funded With Cash on Hand In the current rate environment, funding the entire $1 billion package

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Fission Forward: Next-Gen Nuclear Power Developments for the AI Data Center Boom

Constellation proposes to begin with 1.5 GW of fast-tracked projects, including 800 MW of battery energy storage and 700 MW of new natural gas generation to address short-term reliability needs. The remaining 4.3 GW represents longer-term investment at the Calvert Cliffs Clean Energy Center: extending both units for an additional 20 years beyond their current 2034 and 2036 license expirations, implementing a 10% uprate that would add roughly 190 MW of output, and pursuing 2 GW of next-generation nuclear at the existing site. For Maryland, a state defined by a dense I-95 fiber corridor, accelerating data center buildout, and rising AI-driven load, the plan could be transformative. If Constellation moves from “option” to “program,” the company estimates that 70% of the state’s electricity supply could come from clean energy sources, positioning Maryland as a top-tier market for 24/7 carbon-free power. TerraPower’s Natrium SMR Clears a Key Federal Milestone On Oct. 23, the Nuclear Regulatory Commission issued the final environmental impact statement (FEIS) for TerraPower’s Natrium small modular reactor in Kemmerer, Wyoming. While not a construction permit, FEIS completion removes a major element of federal environmental risk and keeps the project on track for the next phase of NRC review. TerraPower and its subsidiary, US SFR Owner, LLC, originally submitted the construction permit application on March 28, 2024. Natrium is a sodium-cooled fast reactor producing roughly 345 MW of electric output, paired with a molten-salt thermal-storage system capable of boosting generation to about 500 MW during peak periods. The design combines firm baseload power with flexible, dispatchable capability, an attractive profile for hyperscalers evaluating 24/7 clean energy options in the western U.S. The project is part of the DOE’s Advanced Reactor Demonstration Program, intended to replace retiring coal capacity in PacifiCorp’s service territory while showcasing advanced fission technology. For operators planning multi-GW

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Microsoft will invest $80B in AI data centers in fiscal 2025

And Microsoft isn’t the only one that is ramping up its investments into AI-enabled data centers. Rival cloud service providers are all investing in either upgrading or opening new data centers to capture a larger chunk of business from developers and users of large language models (LLMs).  In a report published in October 2024, Bloomberg Intelligence estimated that demand for generative AI would push Microsoft, AWS, Google, Oracle, Meta, and Apple would between them devote $200 billion to capex in 2025, up from $110 billion in 2023. Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025. Both figures, though, are way higher than Microsoft’s 2020 capital expenditure of “just” $17.6 billion. The majority of the increased spending is tied to cloud services and the expansion of AI infrastructure needed to provide compute capacity for OpenAI workloads. Separately, last October Amazon CEO Andy Jassy said his company planned total capex spend of $75 billion in 2024 and even more in 2025, with much of it going to AWS, its cloud computing division.

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John Deere unveils more autonomous farm machines to address skill labor shortage

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Self-driving tractors might be the path to self-driving cars. John Deere has revealed a new line of autonomous machines and tech across agriculture, construction and commercial landscaping. The Moline, Illinois-based John Deere has been in business for 187 years, yet it’s been a regular as a non-tech company showing off technology at the big tech trade show in Las Vegas and is back at CES 2025 with more autonomous tractors and other vehicles. This is not something we usually cover, but John Deere has a lot of data that is interesting in the big picture of tech. The message from the company is that there aren’t enough skilled farm laborers to do the work that its customers need. It’s been a challenge for most of the last two decades, said Jahmy Hindman, CTO at John Deere, in a briefing. Much of the tech will come this fall and after that. He noted that the average farmer in the U.S. is over 58 and works 12 to 18 hours a day to grow food for us. And he said the American Farm Bureau Federation estimates there are roughly 2.4 million farm jobs that need to be filled annually; and the agricultural work force continues to shrink. (This is my hint to the anti-immigration crowd). John Deere’s autonomous 9RX Tractor. Farmers can oversee it using an app. While each of these industries experiences their own set of challenges, a commonality across all is skilled labor availability. In construction, about 80% percent of contractors struggle to find skilled labor. And in commercial landscaping, 86% of landscaping business owners can’t find labor to fill open positions, he said. “They have to figure out how to do

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2025 playbook for enterprise AI success, from agents to evals

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More 2025 is poised to be a pivotal year for enterprise AI. The past year has seen rapid innovation, and this year will see the same. This has made it more critical than ever to revisit your AI strategy to stay competitive and create value for your customers. From scaling AI agents to optimizing costs, here are the five critical areas enterprises should prioritize for their AI strategy this year. 1. Agents: the next generation of automation AI agents are no longer theoretical. In 2025, they’re indispensable tools for enterprises looking to streamline operations and enhance customer interactions. Unlike traditional software, agents powered by large language models (LLMs) can make nuanced decisions, navigate complex multi-step tasks, and integrate seamlessly with tools and APIs. At the start of 2024, agents were not ready for prime time, making frustrating mistakes like hallucinating URLs. They started getting better as frontier large language models themselves improved. “Let me put it this way,” said Sam Witteveen, cofounder of Red Dragon, a company that develops agents for companies, and that recently reviewed the 48 agents it built last year. “Interestingly, the ones that we built at the start of the year, a lot of those worked way better at the end of the year just because the models got better.” Witteveen shared this in the video podcast we filmed to discuss these five big trends in detail. Models are getting better and hallucinating less, and they’re also being trained to do agentic tasks. Another feature that the model providers are researching is a way to use the LLM as a judge, and as models get cheaper (something we’ll cover below), companies can use three or more models to

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OpenAI’s red teaming innovations define new essentials for security leaders in the AI era

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More OpenAI has taken a more aggressive approach to red teaming than its AI competitors, demonstrating its security teams’ advanced capabilities in two areas: multi-step reinforcement and external red teaming. OpenAI recently released two papers that set a new competitive standard for improving the quality, reliability and safety of AI models in these two techniques and more. The first paper, “OpenAI’s Approach to External Red Teaming for AI Models and Systems,” reports that specialized teams outside the company have proven effective in uncovering vulnerabilities that might otherwise have made it into a released model because in-house testing techniques may have missed them. In the second paper, “Diverse and Effective Red Teaming with Auto-Generated Rewards and Multi-Step Reinforcement Learning,” OpenAI introduces an automated framework that relies on iterative reinforcement learning to generate a broad spectrum of novel, wide-ranging attacks. Going all-in on red teaming pays practical, competitive dividends It’s encouraging to see competitive intensity in red teaming growing among AI companies. When Anthropic released its AI red team guidelines in June of last year, it joined AI providers including Google, Microsoft, Nvidia, OpenAI, and even the U.S.’s National Institute of Standards and Technology (NIST), which all had released red teaming frameworks. Investing heavily in red teaming yields tangible benefits for security leaders in any organization. OpenAI’s paper on external red teaming provides a detailed analysis of how the company strives to create specialized external teams that include cybersecurity and subject matter experts. The goal is to see if knowledgeable external teams can defeat models’ security perimeters and find gaps in their security, biases and controls that prompt-based testing couldn’t find. What makes OpenAI’s recent papers noteworthy is how well they define using human-in-the-middle

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