We know that the data center industry is currently undergoing a period of rapid transformation, driven by the increasing demands of artificial intelligence (AI) workloads and evolving cooling technologies. And it appears that the recent emergence of DeepSeek, a Chinese AI startup, alongside supply chain issues for NVIDIA’s next-generation GB200 AI chips, may be prompting data center operators to reconsider their cooling strategies. Angela Taylor, Chief of Staff at LiquidStack, provided insights to Data Center Frontier on these developments, outlining potential shifts in the industry and the future of liquid cooling adoption. DeepSeek’s Market Entry and Supply Chain Disruptions Taylor told DCF, “DeepSeek’s entry into the market, combined with NVIDIA’s GB200 supply chain delays, is giving data center operators a lot to think about.” At issue here is how DeepSeek’s R1 chatbot came out of the box positioned an energy-efficient AI model that reportedly requires significantly less power than many of its competitors. This development raises questions about whether current data center cooling infrastructures are adequate, particularly as AI workloads become more specialized and diverse. At the same time, NVIDIA’s highly anticipated GB200 NVL72 AI servers, designed to handle next-generation AI workloads, are reportedly facing supply chain bottlenecks. Advanced design requirements, particularly for high-bandwidth memory (HBM) and power-efficient cooling systems, have delayed shipments, with peak availability now expected between Q2 and Q3 of 2025.  This combination of a new AI player and delayed hardware supply has created uncertainty, compelling data center operators to reconsider their near-term cooling infrastructure investments. A Temporary Slowdown in AI Data Center Retrofits? Taylor also observed, “We may see a short-term slowdown in AI data center retrofits as operators assess whether air cooling can now meet their needs.” The efficiency of DeepSeek’s AI models suggests that some AI workloads may require less power and generate less heat, making air

The rule also mandates that any new contracts between Georgia Power and large-load customers exceeding 100 MW be submitted to the PSC for review. This provision ensures regulatory oversight and transparency in agreements that could significantly impact the state’s power grid and ratepayers. Commissioner Lauren “Bubba” McDonald points out that this is one of a number of actions that the PSC is planning to protect ratepayers, and that the PSC’s 2025 Integrated Resource Plan will further address data center power usage. Keeping Ahead of Anticipated Energy Demand This regulatory change reflects Georgia’s proactive approach to managing the increasing energy demands associated with the state’s growing data center industry, aiming to balance economic development with the interests of all electricity consumers. Georgia Power has been trying very hard to develop generation capacity to meet it’s expected usage pattern, but the demand is increasing at an incredible rate. In their projection for increased energy demand, the 2022 number was 400 MW by 2030. A year later, in their 2023 Integrated Resource Plan, the anticipated increase had grown to 6600 MW by 2030. Georgia Power recently brought online two new nuclear reactors at the Vogtle Electric Generating Plant, significantly increasing its nuclear generation capacity giving the four unit power generation station a capacity of over 4.5 GW. This development has contributed to a shift in Georgia’s energy mix, with clean energy sources surpassing fossil fuels for the first time. But despite the commitment to nuclear power, the company is also in the process of developing three new power plants at the Yates Steam Generating Plant. According to the AJC newspaper, regulators had approved the construction of fossil fuel power, approving natural gas and oil-fired power plants. Designed as “peaker” plants to come online at times of increased the demand, the power plants will

Other Recent Natural Gas Developments for Data Centers As of February 2025, the data center industry has seen a host of significant developments in natural gas plant technologies and strategic partnerships aimed at meeting the escalating energy demands driven by AI and cloud computing. In addition to the partnership between Chevron, Engine No. 1, and GE Vernova, other consequential initiatives include the following: ExxonMobil’s Entry into the Electricity Market ExxonMobil has announced plans to build natural gas-fired power plants to supply electricity to AI data centers. The company intends to leverage carbon capture and storage technology to minimize emissions, positioning its natural gas solutions as competitive alternatives to nuclear power. This announcement in particular seemed to herald a notable shift in industry as fossil fuel companies venture into the electricity market to meet the rising demand for low-carbon power. Powerconnex Inc.’s Natural Gas Plant in Ohio An Ohio data center in New Albany, developed by Powerconnex Inc., plans to construct a natural gas-fired power plant on-site to meet its electricity needs amidst the AI industry’s increasing energy demands. The New Albany Energy Center is expected to generate up to 120 megawatts (MW) of electricity, with construction beginning in Q4 2025 and operations commencing by Q1 2026. Crusoe and Kalina Distributed Power Partnership in Alberta, Canada AI data center developer Crusoe has entered into a multi-year framework agreement with Kalina Distributed Power to develop multiple co-located AI data centers powered by natural gas power plants in Alberta, Canada. Crusoe will own and operate the data centers, purchasing power from three Kalina-owned 170 MW gas-fired power plants through 15-year Power Purchase Agreements (PPAs). Entergy’s Natural Gas Power Plants for Data Centers Entergy plans to deploy three new natural gas power plants, providing over 2,200 MW of energy over 15 years, pending approval

In the latest episode of the Data Center Frontier Show podcast, DCF Editor-in-Chief Matt Vincent sits down with Phill Lawson-Shanks, Chief Innovation Officer at Aligned Data Centers, for a wide-ranging discussion that touches on some of the most pressing trends and challenges shaping the future of the data center industry. From the role of nuclear energy and natural gas in addressing the sector’s growing power demands, to the rapid expansion of Aligned’s operations in Latin America (LATAM), in the course of the podcast Lawson-Shanks provides deep insight into where the industry is headed. Scaling Sustainability: Tracking Embodied Carbon and Scope 3 Emissions A key focus of the conversation is sustainability, where Aligned continues to push boundaries in carbon tracking and energy efficiency. Lawson-Shanks highlights the company’s commitment to monitoring embodied carbon—an effort that began four years ago and has since positioned Aligned as an industry leader. “We co-authored and helped found the Climate Accord with iMasons—taking sustainability to a whole new level,” he notes, emphasizing how Aligned is now extending its carbon traceability standards to ODATA’s facilities in LATAM. By implementing lifecycle assessments (LCAs) and tracking Scope 3 emissions, Aligned aims to provide clients with a detailed breakdown of their environmental impact. “The North American market is still behind in lifecycle assessments and environmental product declarations. Where gaps exist, we look for adjacencies and highlight them—helping move the industry forward,” Lawson-Shanks explains. The Nuclear Moment: A Game-Changer for Data Center Power One of the most compelling segments of the discussion revolves around the growing interest in nuclear energy—particularly small modular reactors (SMRs) and microreactors—as a viable long-term power solution for data centers. Lawson-Shanks describes the recent industry buzz surrounding Oklo’s announcement of a 12-gigawatt deployment with Switch as a significant milestone, calling the move “inevitable.” “There are dozens of nuclear

Talen Energy filed suit on January 28th against the Federal Energy Regulatory Commission (FERC)’s November 2024 ruling to prevent the company from finalizing their power purchase agreement with Amazon Web Services (AWS).   The rejection of the original agreement marked a pivotal development in the United States’ energy policy and data center operations alongside technological advances. Various sectors such as renewable energy investment, data center expansion, grid reliability, and corporate sustainability planning will feel the impact of this ruling. It seems that the primary concerns of FERC were the lack of transparency about the implementation plans, and whether or not the deal would raise consumer prices on power. FERC had also denied a rehearing request from Talen which has resulted in this filing with the Fifth Circuit Court of Appeals. Background on the Talen-AWS Power Agreement As a major player in the cloud services industry under Amazon’s umbrella, AWS continues to rapidly build its infrastructure to address the increasing demand for cloud computing services. The expansion of AWS includes building data centers which need massive energy consumption. In its Fourth Quarter 2024 financial results, AWS reported significant developments related to data centers and infrastructure. The company achieved net sales of $28.8 billion in Q4 2024, marking a 19% increase from the same quarter in 2023. Operating income for AWS also rose to $10.6 billion, up from $7.2 billion in Q4 2023. AWS also announced a $10 billion investment to build two data center complexes in Mississippi, the largest capital investment in the state’s history, expected to create at least 1,000 jobs. AWS has also pledged to achieve 100% renewable energy for its operations by 2025 as part of Amazon’s wider environmental commitment. For its part, the Pennsylvania-based energy company Talen Energy maintains a varied portfolio of generation assets which combines both traditional

Meanwhile, high performance computing (HPC) and supercomputing have been big wins for AMD with El Capitan. The supercomputer at Lawerence Livermore National Laboratory has the recent distinction becoming the second AMD powered supercomputer to pass the exascale performance threshold and hitting #1 on the most recent Top500 supercomputer list. What’s Going On With Intel? In December 2024, CEO Pat Gelsinger was ousted amid dissatisfaction with the pace of his turnaround strategy. Interim co-CEOs David Zinsner and Michelle Johnston Holthaus have assumed leadership as the company searches for a permanent successor. This leadership instability has raised concerns about Intel’s strategic direction, particularly in its efforts to establish a contract chip manufacturing business. In the third quarter of 2024, AMD surpssed Intel’s data center and AI group’s earnings of $3.3 billion in the same period. In the AI chip market, Intel has struggled to keep pace with Nvidia. The company canceled plans for its Falcon Shores GPU accelerator and has seen weak demand for its Gaudi AI accelerator chip. At the same time, AMD has seen significant success with its Instinct family of GPUs. In the server CPU segment, Intel has delayed its efficiency-focused Clearwater Forest server CPU to 2026, while its 18A process is performing well. Further, Intel is preparing a high-core-count server CPU, Granite Rapids, slated for release in 2025, aiming to match AMD’s core counts for the first time since 2017. Market analysts expect continued market share loses to AMD in PC and Server, where Intel formerly dominated, as reflected  by the company’s 4% market share loss, and AMD picking up that market share. While Intel is focusing on managing operating expenses and refocusing their efforts, having shed underperforming units over the last 18 months, Intel faces significant market challenges. What Does the Future Hold for AMD? AMD EVP,