Netskope is expanding its global presence by adding multiple regions to its NewEdge carrier-grade infrastructure, which now includes more than 75 locations to ensure processing remains close to end users. The secure access service edge (SASE) provider also enhanced its digital experience monitoring (DEM) capabilities with AI-powered root-cause analysis and automated network diagnostics. “We are announcing continued expansion of our infrastructure and our continued focus on resilience. I’m a believer that nothing gets adopted if end users don’t have a great experience,” says Netskope CEO Sanjay Beri. “We monitor traffic, we have multiple carriers in every one of our more than 75 regions, and when traffic goes from us to that destination, the path is direct.” Netskope added regions including data centers in Calgary, Helsinki, Lisbon, and Prague as well as expanded existing NewEdge regions including data centers in Bogota, Jeddah, Osaka, and New York City. Each data center offers customers a range of SASE capabilities including cloud firewalls, secure web gateway (SWG), inline cloud access security broker (CASB), zero trust network access (ZTNA), SD-WAN, secure service edge (SSE), and threat protection. The additional locations enable Netskope to provide coverage for more than 220 countries and territories with 200 NewEdge Localization Zones, which deliver a local direct-to-net digital experience for users, the company says.

The latest episode of the DCF Show podcast delves into one of the most pressing challenges facing the data center industry today: the search for sustainable, high-density power solutions. And how, as hyperscale operators like Google and Meta contend with growing energy demands—and, in some cases, resistance from utilities unwilling or unable to support their expanding footprints—the conversation around nuclear energy has intensified.  Both legacy nuclear providers and innovative startups are racing to secure the future business of data center giants, each bringing unique approaches to the table. Our guest for this podcast episode is Matt Loszak, co-founder and CEO of Aalo Atomics, an Austin-based company that’s taking a fresh approach to nuclear energy. Aalo, which secured a $29.5 million Series A funding round in 2024, stands out in the nuclear sector with its 10-megawatt sodium-cooled reactor design—eliminating the need for water, a critical advantage for siting flexibility. Inspired by the Department of Energy’s MARVEL microreactor, Aalo’s technology benefits from direct expertise, as the company’s CTO was the chief architect behind MARVEL. Beyond reactor design, Aalo’s vision extends to full-scale modular plant production. Instead of just building reactors, the company aims to manufacture entire nuclear plants using prefabricated, LEGO-style components. The fully modular plants, shipped in standard containers, are designed to match the footprint of a data center while requiring no onsite water—features that could make them particularly attractive to hyperscale operators seeking localized, high-density power.  Aalo has already made significant strides, with the Department of Energy identifying land at Idaho National Laboratory (INL) as a potential site for its first nuclear facility. The company is on an accelerated timeline, expecting to complete a non-nuclear prototype within three months and break ground on its first nuclear reactor in about a year—remarkably fast progress for the nuclear industry. In our discussion,

Strategic Reallocation: Microsoft is a major owner and operator of data centers and might be reallocating resources to in-house infrastructure rather than leased spaces. Supply Chain Delays: TD Cowen noted that Microsoft used power and facility delays as justifications for voiding agreements, a tactic previously employed by Meta. Oversupply Issues: Analysts at TD Cowen speculate that Microsoft may have overestimated AI demand, leading to an excess in capacity. As it is all speculation, it could simply be that the latest information has driven Microsoft to reevaluate demand and move to more closely align projected supply with projected demand. Microsoft has reiterated their commitment to spend $80 billion on AI in the coming year. Reallocating this spending internally or wit a different set of partners remains on the table. And when you put the TD Cowen report that Microsoft has cancelled leases for “a couple hundred megawatts” into context with Microsoft’s overall leased power, which is estimated at around 20 GW, you see that more than 98% of their energy commitment remains unchanged. Investment Markets Might See the Biggest Hits Microsoft’s retreat has had ripple effects on the stock market, particularly among energy and infrastructure companies. European firms like Schneider Electric and Siemens Energy experienced a decline in stock value, indicating fears that major AI companies might scale back energy-intensive data center investments. However, at press time we have not seen any other indicators that this is an issue as despite these concerns about potential AI overcapacity, major tech firms continue to invest heavily in AI infrastructure:         Amazon: Pledged $100 billion towards AI data centers.         Alphabet (Google): Committed $75 billion.         Meta (Facebook): Planning to spend up to $65 billion.         Alibaba: Announced a $53 billion investment over the next three years. If we see a rush of announcements

Nuclear Giant Constellation Acquires Natural Gas Stalwart Calpine, Creating the Largest U.S. Clean Energy Provider On January 10, 2025, Constellation (Nasdaq: CEG) announced a definitive agreement to acquire Calpine Corp. in a $16.4 billion cash-and-stock transaction, including the assumption of $12.7 billion in net debt.  A landmark transaction, the acquisition positions Constellation as the largest clean energy provider in the United States, significantly enhancing its generation portfolio with natural gas and geothermal assets. With an expanded coast-to-coast footprint, the combined company will provide 60 GW of power, reinforcing grid reliability and offering businesses and consumers a broader array of sustainability solutions. The move strengthens Constellation’s competitive retail electricity presence, serving 2.5 million customers across key U.S. markets, including Texas, California, and the Northeast. “This acquisition will help us better serve our customers across America, from families to businesses and utilities,” said Joe Dominguez, president and CEO of Constellation. “By combining Constellation’s unmatched expertise in zero-emission nuclear energy with Calpine’s industry-leading, low-carbon natural gas and geothermal generation, we can deliver the most comprehensive clean energy portfolio in the industry.” A Strategic Move for the Data Center Industry With skyrocketing demand for AI and cloud services, data centers are under increasing pressure to secure reliable, low-carbon energy sources. The Constellation-Calpine combination is particularly relevant for large-scale hyperscale operators and colocation providers seeking flexible energy solutions.  For the data center industry, this consolidation offers several advantages: Diverse Energy Mix: The integration of nuclear, geothermal, and low-emission natural gas provides data centers with flexible and reliable energy options. Grid Stability: Calpine’s extensive natural gas fleet enhances grid reliability, crucial for data centers operating in high-demand regions. Sustainability Initiatives: The combined entity is well-positioned to invest in clean energy infrastructure, including battery storage and carbon sequestration, aligning with the sustainability goals of hyperscale operators. The

AI is being readily embraced by organizations, government, and individual enthusiasts for data aggregation, pattern recognition, data visualization, and co-creation of content. Given the headlines lately, AI is set to take over the world. And as an emerging, revolutionary technology with large potential impact and newfound user-friendliness, both large tech companies and small startups alike have raced to capitalize on potential growth. Hands down, this transformative technology has caused a wave of adoption, investment, and innovation around the world and across industries. Naturally, when a technology or application accelerates quickly, the more risk-averse will be cautious and when it accelerates this quickly, a bubble might be forming. Even more bullish investors have ridden through too much tumult in the past few decades for their bank accounts to withstand another cataclysmic loss. More investment is pouring in (including at a federal level), stock valuations are all over the charts and not necessarily true to a ticker’s earnings, and the recent market fluctuations leave the entire ecosystem a little hesitant about buying into the hype too much. The Nature of Bubbles and Some Potential Signals to Watch For Economic bubbles occur when asset prices significantly exceed their intrinsic value, often fueled by speculative demand and irrational investment, leading to unsustainable market conditions. A bigger concern than just to digital infrastructure, bubbles can have far-reaching impacts on the entire market, as the initial distorted financial metrics encourage excessive lending and create systemic risk. The collapse of a bubble can trigger a chain reaction of financial distress, causing widespread economic instability and potentially leading to recessions, as seen in historical examples like the dot-com and housing bubbles. Reasonable bubble indicators that have the market concerned include: Overvaluation and Lack of Profit Generation: Tech giants are heavily invested in AI despite limited returns from the

Cedar Rapids: A Growing Data Center Hub in the Heartland Leading up to the mega-investments by QTS and Google, Cedar Rapids has quietly emerged as a compelling location for data center investment, leveraging its strategic Midwest positioning, resilient infrastructure, and business-friendly environment. While much of the national attention has focused on hyperscale players, other operators and enterprises are making moves in the region, capitalizing on Iowa’s affordable power, strong fiber connectivity, and low risk of natural disasters. Enterprise and Colocation Growth Several regional enterprises have established or expanded their data center footprints in Cedar Rapids, drawn by the city’s reliable power grid and access to renewable energy. Local financial institutions, healthcare providers, and insurance firms have continued to bolster their IT resilience with both on-premises expansions and partnerships with colocation providers. Additionally, ark data centers (formerly Involta), a well-established name in the colocation and hybrid IT space, has maintained a strong presence in Cedar Rapids. The company operates a Tier III data center in the region, catering to mid-market enterprises and organizations seeking managed services, cloud connectivity, and disaster recovery solutions. ark’s Cedar Rapids facility benefits from a high-speed fiber network, offering secure and low-latency access to cloud platforms and business-critical applications. Infrastructure and Connectivity Very importantly, Cedar Rapids benefits from a robust fiber-optic network, making it an attractive option for companies looking to deploy edge computing capabilities closer to end users in the Midwest. Providers such as Lumen (formerly CenturyLink) and Windstream have strengthened regional connectivity, ensuring high-performance network routes between key Midwest metros like Chicago, Minneapolis, and Omaha. Iowa’s competitive energy market continues to be a draw, with utilities such as the aforementioned Alliant Energy supporting sustainability initiatives and offering attractive rates. The state’s commitment to renewable energy—including a growing mix of wind and solar—aligns with enterprise sustainability goals,