Stay Ahead, Stay ONMINE

From NIMBY to YIMBY: A Playbook for Data Center Community Acceptance

Across many conversations at the start of this year, at PTC and other conferences alike, the word on everyone’s lips seems to be “community.” For the data center industry, that single word now captures a turning point from just a few short years ago: we are no longer a niche, back‑of‑house utility, but a front‑page […]

Across many conversations at the start of this year, at PTC and other conferences alike, the word on everyone’s lips seems to be “community.” For the data center industry, that single word now captures a turning point from just a few short years ago: we are no longer a niche, back‑of‑house utility, but a front‑page presence in local politics, school board budgets, and town hall debates. That visibility is forcing a choice in how we tell our story—either accept a permanent NIMBY-reactive framework, or actively build a YIMBY narrative that portrays the real value digital infrastructure brings to the markets and surrounding communities that host it.

Speaking regularly with Ilissa Miller, CEO of iMiller Public Relations about this topic, there is work to be done across the ecosystem to build communications. Miller recently reflected: “What we’re seeing in communities isn’t a rejection of digital infrastructure, it’s a rejection of uncertainty driven by anxiety and fear. Most local leaders have never been given a framework to evaluate digital infrastructure developments the way they evaluate roads, water systems, or industrial parks. When there’s no shared planning language, ‘no’ becomes the safest answer.”

A Brief History of “No”

Community pushback against data centers is no longer episodic; it has become organized, media‑savvy, and politically influential in key markets. In Northern Virginia, resident groups and environmental organizations have mobilized against large‑scale campuses, pressing counties like Loudoun and Prince William to tighten zoning, question incentives, and delay or reshape projects.1

Loudoun County’s move in 2025 to end by‑right approvals for new facilities, requiring public hearings and board votes, marked a watershed moment as the world’s densest data center market signaled that communities now expect more say over where and how these campuses are built. Prince William County’s decision to sharply increase its tax rate on data center equipment and Fairfax County’s ban on data centers within a mile of rail stations, reinforced the message that growth would be more conditional and contested.

Opposition is also spreading beyond Virginia, with towns like Peculiar, Missouri, blocking billion‑dollar proposals over noise and siting concerns, and local coalitions using tools from lawsuits to yard‑sign campaigns to challenge projects. Between May, 2024 and March, 2025, Data Center Watch reports that $64 billion of data center projects have been blocked or delayed amid local opposition.2 Heatmap News cites $98 billion of data center projects blocked or delayed across 25 project cancellations, 21 of which occurred in the second half of last year.3 The resistance is gaining ground and the costs are rising. 

In this environment, simply reacting to “No” is no longer a strategy; it is a slow surrender of narrative ground to groups that define data centers solely by what they might take away, rather than what we actually create.

What Data Centers Really Bring

For host communities, the promise of data centers is not as abstract as some treat it. The value readily shows up in tax receipts, infrastructure upgrades, and long‑term employment, even if those benefits are often loosely explained at the outset of a project, depending on construction timelines and operational decisions that will be made much later than the initial site acquisition. In Loudoun County, data centers now provide nearly half of all property tax revenue, supporting public services at a scale few other industries can match and helping the county anticipate between $800 million and $1 billion in data center tax revenue this year alone.4

That kind of fiscal capacity changes local politics: officials have cited the industry’s impact on keeping residential tax rates lower and funding school construction and renovation without imposing new burdens on homeowners. Prince William County reports data center‑related revenue in the hundreds of millions of dollars, much of it flowing into the general fund that pays for education and core services. Across the United States, the broader data center industry contributed an estimated $162.7 billion in tax revenues to local, state, and federal governments in 2023, reflecting a 146 percent increase since 2017.4

Jobs, while sometimes debated locally, are both direct and indirect: from high‑skill roles paying into six figures to thousands of construction jobs and a steady demand for electricians, HVAC technicians, security, and local vendors. In emerging regions like Southside Virginia, proposed campuses are pitched as catalysts for economic diversification, offering “high‑skill high‑paying” positions and investments in onsite power that expand the tax base and modernize energy infrastructure simultaneously.5 The real story, if told clearly, is not just about support of the ever-increasing digital world, but about durable, capital‑intensive assets that anchor local revenue and enable broader technology advancement and application for businesses, schools, and local mission critical needs.

Taxes, Incentives, and Shared Upside

Incentive packages often become the flashpoint where NIMBY arguments crystallize, with critics charging that data centers receive “giveaways” at public expense. Yet in practice, many of these tools (property tax abatements, sales tax exemptions on equipment, and expedited permitting) are structured to trade near‑term relief for long‑term, outsized revenue streams and infrastructure upgrades. As states have discovered over the past several years, incentives have evolved from one‑off bargaining chips into core elements of a broader economic strategy, with dozens of jurisdictions racing to refine programs that can secure high‑value digital infrastructure while still delivering tangible returns for local residents.6

Reports from organizations like the Data Center Coalition document how, in markets such as Texas, data centers generate substantial recurring tax revenue at the state and local level, even after accounting for incentive programs.7 Industry analyses highlight that for every dollar spent in local services for data centers, counties like Loudoun can receive well over twenty dollars back in revenue, a ratio difficult to replicate with other commercial uses.5 These returns fund not only schools and emergency services, but also upgrades to roads, substations, and broadband that benefit the wider community, not just the project site.

As more states and localities compete for AI‑driven campuses, incentives are also aligning with policy goals: tying tax benefits to energy‑efficiency standards, limiting pass‑through of infrastructure costs to consumers, and encouraging co‑investment in resilient power and digital equity initiatives. The political debate is shifting from whether incentives are justified at all to how to ensure they produce visible, measurable gains for residents over the lifecycle of the facility. That is fertile ground for a YIMBY frame that positions communities as partners, not passive recipients, in structuring these deals.

From NIMBY to YIMBY: Reframing the Narrative

“Not in my back yard” has become shorthand for fears about noise, visual impact, energy use, and environmental risk—concerns that are real but often amplified by a lack of clear, accessible information. A YIMBY approach for data centers does not dismiss those objections; it gets ahead of them by acknowledging that these concerns persist, and then lays out what saying “yes” unlocks when projects are designed and negotiated well. 

One emerging theme from industry and civic conversations is that many community planners do not yet have a mental model for digital infrastructure; they think in terms of roads and water lines, not fiber routes or compute density. This “translation gap” can push risk‑averse local officials to default to “no” simply because they are unsure what questions to ask or what leverage they actually have.

Miller provided her insights into what these conversations might entail. “Many county planners aren’t opposed to data centers, they’re simply being asked to make long-term land-use decisions without a clear understanding of what questions to ask or what leverage they actually have. YIMBY doesn’t mean saying yes blindly; it means empowering communities with information to effectively assess what they have, what they need and ultimately what they want. The outcome, we hope, is clarity. They can say yes or no based on the specific conditions that reflect their community’s priorities.” 

YIMBY‑oriented engagement flips the script. Instead of approaching a locality with a fully baked plan and a narrow permit request, developers and operators can frame data centers as tools to achieve shared priorities: improved tax stability, digital inclusion, better connectivity for local businesses, and modernized energy systems. The language shifts from “let us build here” to “here is how this facility can help your community do what it already wants to do—if we discuss those needs together.”

Communities That Say “Yes”

Even as headline‑grabbing battles play out, there are quieter stories of communities that have not only accepted data centers, but actively pursued them as part of long‑term development strategies. Counties such as Danville‑Pittsylvania in Virginia5 have unanimously approved data center proposals, seeing them as a path to new investment, infrastructure, and jobs in regions transitioning from traditional industries.

Local officials in these areas talk about data centers as economic engines, citing projected millions in annual tax revenues and hundreds of high‑paying jobs as justification for support. In some cases, early projects have already lowered tax pressures on residents or financed school improvements, reinforcing the perception that our facilities can coexist with rural character and quality of life when sited and managed responsibly.

On a broader scale, states that have built predictable, transparent policy frameworks combining clear zoning, targeted incentives, and expectations around sustainability, are positioning themselves as YIMBY jurisdictions for digital infrastructure. Their message to both industry and citizens is that data centers are welcome, but on terms that reflect local values and long‑term planning priorities. These examples are the raw material for a new narrative: not just “no more data center sprawl,” but “yes, to the right projects, in the right places, with the right commitments.”

The Architecture of “Yes”

“Communities don’t need to be convinced that digital infrastructure matters. Technology is everywhere; we know it matters,” noted Miller. “Communities need to be empowered with information and tools to evaluate their community needs on their own terms. When local leaders understand what they can negotiate for, from siting and design to infrastructure investment and community benefits, the conversation shifts from opposition to partnership.”

One of the most promising developments in this shift from NIMBY to YIMBY is the work underway to give communities practical frameworks, language, and tools to engage with digital infrastructure on their own terms. Within the OIX Association, the Digital Infrastructure Framework Committee, led by board member Ilissa Miller, is building exactly this kind of toolkit.

The Digital Infrastructure Framework is designed to help local governments assess what digital assets they already have, where the gaps are, and how new infrastructure, from fiber routes to data centers, can close those gaps in ways that support everything from healthcare and education to small‑business growth. Miller emphasizes that the goal is not to convince every community to host a data center, but to ensure they understand their options and the negotiating leverage they bring to the table. As she has argued, planners are often saying “no” before they understand that they can ask for better design, stronger community benefits, or different siting approaches instead.

OIX is pairing this framework with active outreach to organizations like the National Association of Counties and the U.S. Conference of Mayors, embedding digital infrastructure considerations into mainstream municipal conversations. By meeting civic leaders where they already gather and speak, the initiative helps normalize data centers as part of the planning lexicon, not as exotic or opaque projects. That normalization is a quiet but powerful form of YIMBYism: it makes “yes, with conditions” a more comfortable, informed choice than “no, because we don’t understand this yet.”

Industry associations such as the Data Center Coalition are also contributing to the “Architecture of Yes” by publishing accessible data on economic and tax impacts at the state and local level. Their reports give mayors, supervisors, and community advocates concrete numbers to weigh against fears, showing how tax revenue, job creation, and infrastructure investment play out over time. When used alongside frameworks like OIX’s, these resources equip communities to negotiate from a position of knowledge rather than anxiety.

Shifting the Dialogue

Data centers have gone mainstream; they are now part of how cities and counties think about economic development, climate goals, and digital opportunity. That new visibility means our industry can no longer afford to define itself reactively against NIMBY critiques, repeating opponents’ vocabulary and responding on their terms.

A YIMBY mindset asks different questions: What does a “good” data center look like for this community? How do we measure success not only in megawatts and megabits, but in tax stability, educational outcomes, and resilience? Who are the local voices that need to be at the table early—planners, school boards, small businesses, neighborhood associations—and what information, tools, and negotiable levers do we put in their hands from the start?

Data center operators with “community” at the core of their approach, groups like OIX’s Digital Infrastructure Framework Committee, advocates such as Ilissa Miller, and industry bodies including the Data Center Coalition are sketching the outlines of an answer: standard language, shared data, and repeatable playbooks that help communities say “yes, and here is how we want this to work for us.” The next phase is for developers, operators, and investors to internalize that approach, integrating it into site selection, design, and community engagement rather than treating it as crisis management after opposition emerges.

Miller concludes, “The next phase for this industry isn’t about winning individual projects, it’s about earning long-term trust that the digital infrastructure projects are indeed for the greater good and not just corporate greed. That happens when digital infrastructure is integrated into master planning early, discussed transparently, and measured not just in megawatts, but in community outcomes over decades.”

If “community” is the word on everyone’s lips, then “Getting to Yes” needs to be the story our sector learns to tell—clearly, confidently, and collaboratively. Not because every project deserves approval, but because every community deserves the chance to understand the benefits of what saying yes could truly mean in their own back yard.

References:

  1. https://www.hawthorngroup.com/energy-news/another-data-center-stopped-by-local-opposition/

  2. https://www.datacenterwatch.org/report

  3. https://www.yahoo.com/news/articles/report-finds-data-center-cancellations-005000945.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAEBTvJ3wTKCbBf_qLZLG2jqeljgjD6Aqtl1xfcsVx6LHOi6vSH2_V_pKh98L4T5X9cPI_oZzomPwNQ86pTxK4UsMcoDc9pV-nJ4NQC1rA5mRNeoJWzMnP0mBCLKby4fUlnS3NWo9vUK-BkC3yxq6AF2ZshRZc3N04ELuGFgsiXWu

  4. https://datacentercoalition.org/cpages/faq

  5. https://cardinalnews.org/2025/04/10/data-centers-can-bring-high-paying-jobs-and-millions-in-tax-revenue-is-that-what-southside-will-get/

  6. https://www.datacenterfrontier.com/site-selection/article/55307797/incentivizing-the-digital-future-inside-americas-race-to-attract-data-centers

  7. https://datacentercoalition.org/reports-and-publications

Shape
Shape
Stay Ahead

Explore More Insights

Stay ahead with more perspectives on cutting-edge power, infrastructure, energy,  bitcoin and AI solutions. Explore these articles to uncover strategies and insights shaping the future of industries.

Shape

CERT-EU blames Trivy supply chain attack for Europa.eu data breach

Back door credentials The Trivy compromise dates to February, when TeamPCP exploited a misconfiguration in Trivy’s GitHub Actions environment, now identified as CVE-2026-33634, to establish a foothold via a privileged access token, according to Aqua Security. Discovering this, Aqua Security rotated credentials but, because some credentials remain valid during this

Read More »

French government take Bull by horns for €404 million

It’s the second time that Bull has been nationalized: The first time, in 1982 was to save it from bankruptcy. Atos, has had financial troubles of its own. In August 2024, it tried — and failed — to sell its legacy infrastructure management business. The company had already staved off

Read More »

Cisco fixes critical IMC auth bypass present in many products

Cisco has released patches for a critical vulnerability in its out-of-band management solution, present in many of its servers and appliances. The flaw allows unauthenticated remote attackers to gain admin access to the Cisco Integrated Management Controller (IMC), which gives administrators remote control over servers even when the main OS

Read More »

Kyndryl service targets AI agent automation, security

Understand agents, serving as a single source of truth to help mitigate the risks associated with shadow AI. Validate each agent before launch by testing for security, resilience, and policy compliance to ensure they meet your standards before going live. Maintain control with real-time guardrails that keep agents operating within

Read More »

Energy Department Authorizes Additional Exports of LNG from Elba Island Terminal, Strengthening Global Energy Supply with U.S. LNG

WASHINGTON—U.S. Secretary of Energy Chris Wright today authorized an immediate 22% increase in exports of liquefied natural gas (LNG) from the Elba Island Terminal in Chatham County, Georgia. With today’s order, Kinder Morgan subsidiary Southern LNG Company L.L.C., operator of the Elba Island LNG Terminal, is now authorized to export up to an additional 28.25 (Bcf/yr) to non-free trade agreement countries, strengthening global natural gas supplies with reliable U.S. LNG. Elba Island was previously authorized to export up to 130 billion cubic feet per year (Bcf/yr) of natural gas as LNG to non-free trade agreement countries and has been exporting U.S. LNG since 2019. The project is positioned to export the additional approved volumes immediately.  “At a time when global energy supply routes face disruption, the United States remains a reliable energy partner to our allies and trading partners,” said DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office, Kyle Haustveit. “DOE is using all available authorities to ensure American energy can reach global markets when it is needed most, supporting energy security and helping stabilize global energy supplies.”  The action comes as global oil and LNG supply routes face disruption from tensions in the Middle East and attacks carried out by Iran and its proxies, threatening the reliable flow of energy through critical maritime corridors. The Department will continue to act, using its full set of authorities, to ensure U.S. LNG remains a dependable energy source in global energy markets and a stabilizing presence in times of disruption.  Thanks to President Trump’s leadership and American innovation, the United States is the world’s largest natural gas producer and exporter, with exports reaching all-time highs in March 2026. Since President Trump ended the previous administration’s LNG export approval ban, the Department has approved more than 19 Bcf/d of LNG export authorizations. With recent final investment decisions for additional export capacity, U.S. LNG exports are set

Read More »

Energy Department Initiates Additional Strategic Petroleum Reserve Emergency Exchange to Stabilize Global Oil Supply

WASHINGTON—The U.S. Department of Energy (DOE) issued a Request for Proposal (RFP) today for an emergency exchange of 10-million-barrels from the Strategic Petroleum Reserve (SPR). This action is part of the coordinated release of 400-million-barrels from IEA member nations’ strategic reserves President Trump previously announced. The United States continues to deliver on its 172-million-barrel release commitment.  The crude oil will originate from the Strategic Petroleum Reserve’s (SPR) Bryan Mound site. Today’s action builds on the initial phase of the Emergency Exchange, which moved quickly to award 45.2 million barrels from the Bayou Choctaw, Bryan Mound, and West Hackberry SPR sites. The 10-million-barrel exchange leverages the full capabilities of the SPR, alongside the President’s limited Jones Act waiver, to accelerate critical near-term oil flows into the market.  “Today’s action furthers the United States’ efforts to move oil quickly to the market and mitigate short-term supply disruptions,” said DOE Assistant Secretary of the Hydrocarbons and Geothermal Energy Office Kyle Haustveit. “Thanks to President Trump, America is managing our national security assets responsibly again. Through this exchange, we will continue to refill the Strategic Petroleum Reserve by bringing additional barrels back at a later date through this pragmatic exchange structure, strengthening its long-term readiness and all at no cost to the American taxpayer.”  Under DOE’s exchange authority, participating companies will return the borrowed 10 million barrels with additional premium barrels by next year. This exchange delivers immediate crude to refiners and the market while generating additional barrels for the American people at no cost to taxpayers.   Bids for the solicitation are due no later than 11:00 A.M. CT on Monday, April 6, 2026.    For more information on the SPR, please visit DOE’s website.   

Read More »

Trump Administration Keeps Colorado Coal Plant Open to Ensure Affordable, Reliable and Secure Power in Colorado

WASHINGTON—U.S. Secretary of Energy Chris Wright today issued an emergency order to keep a Colorado coal plant operational to ensure Americans maintain access to affordable, reliable and secure electricity. The order directs Tri-State Generation and Transmission Association (Tri-State), Platte River Power Authority, Salt River Project, PacifiCorp, and Public Service Company of Colorado (Xcel Energy), in coordination with the Western Area Power Administration (WAPA) Rocky Mountain Region and Southwest Power Pool (SPP), to take all measures necessary to ensure that Unit 1 at the Craig Station in Craig, Colorado is available to operate. Unit One of the coal plant was scheduled to shut down at the end of 2025 but on December 30, 2025, Secretary Wright issued an emergency order directing Tri-State and the co-owners to ensure that Unit 1 at the Craig Station remains available to operate. “The last administration’s energy subtraction policies threatened America’s energy security and positioned our nation to likely experience significantly more blackouts in the coming years—thankfully, President Trump won’t let that happen,” said Energy Secretary Wright. “The Trump Administration will continue taking action to ensure we don’t lose critical generation sources. Americans deserve access to affordable, reliable, and secure energy to power their homes all the time, regardless of whether the wind is blowing or the sun is shining.” Thanks to President Trump’s leadership, coal plants across the country are reversing plans to shut down. In 2025, more than 17 gigawatts (GW) of coal-power electricity generation were saved. On April 1, once Tri-State and the WAPA Rocky Mountain Region join the SPP RTO West expansion, SPP is directed to take every step to employ economic dispatch to minimize costs to ratepayers. According to DOE’s Resource Adequacy Report, blackouts were on track to potentially increase 100 times by 2030 if the U.S. continued to take reliable

Read More »

NextDecade contractor Bechtel awards ABB more Rio Grande LNG automation work

NextDecade Corp. contractor Bechtel Corp. has awarded ABB Ltd. additional integrated automation and electrical solution orders, extending its scope to Trains 4 and 5 of NextDecade’s 30-million tonne/year (tpy)  Rio Grande LNG (RGLNG) plant in Brownsville, Tex. The orders were booked in third- and fourth-quarters 2025 and build on ABB’s Phase 1 work with Trains 1-3, totaling 17 million tpy.  The scope for RGLNG Trains 4 and 5 includes deployment of an integrated control and safety system consisting of a distributed control system, emergency shutdown, and fire and gas systems. An electrical controls and monitoring system will provide unified visibility of the plant’s electrical infrastructure. These two overarching solutions will provide a common automation platform. ABB will also supply medium-voltage drives, synchronous motors, transformers, motor controllers and switchgear.  The orders also include local equipment buildings—two for Train 4 and one for Train 5— housing critical control and electrical systems in prefabricated modules to streamline installation and commissioning on site. The solutions being delivered to Bechtel use ABB adaptive execution, a methodology for capital projects designed to optimize engineering work and reduce delivery timelines. Phase 1 of RGLNG is under construction and expected to begin operations in 2027. Operations at Train 4 are expected in 2030 and Train 5 in 2031. ABB’s senior vice-president for the Americas, Scott McCay, confirmed to Oil & Gas Journal at CERAWeek by S&P Global in Houston that the company is doing similar work through Tecnimont for Argent LNG’s planned 25-million tpy plant in Port Fourchon, La.; 10-million tpy Phase 1 and 15-million tpy Phase 2. Argent is targeting 2030 completion for its plant.

Read More »

Persistent oil flow imbalances drive Enverus to increase crude price forecast

Citing impacts from the Iran war, near-zero flows through the Strait of Hormuz, accelerating global stock draws, and expectations for a muted US production response despite higher prices, Enverus Intelligence Research (EIR) raised its Brent crude oil price forecast. EIR now expects Brent to average $95/bbl for the remainder of 2026 and $100/bbl in 2027, reflecting what it described as a persistent global oil flow imbalance that continues to draw down inventories. “The world has an oil flow problem that is draining stocks,” said Al Salazar, director of research at EIR. “Whenever that oil flow problem is resolved, the world is left with low stocks. That’s what drives our oil price outlook higher for longer.” The outlook assumes the Strait of Hormuz remains largely closed for 3 months. EIR estimates that each month of constrained flows shifts the price outlook by about $10–15/bbl, underscoring the scale of the disruption and uncertainty around its duration. Despite West Texas Intermediate (WTI) prices of $90–100/bbl, EIR does not expect US producers to materially increase output. The firm forecasts US liquids production growth of 370,000 b/d by end-2026 and 580,000 b/d by end-2027, citing drilling-to-production lags, industry consolidation, and continued capital discipline. Global oil demand growth for 2026 has been reduced to about 500,000 b/d from 1.0 million b/d as higher energy prices and anticipated supply disruptions weigh on economic activity. Cumulative global oil stock draws are estimated at roughly 1 billion bbl through 2027, with non-OECD inventories—particularly in Asia—absorbing nearly half of the impact. A 60-day Jones Act waiver may provide limited short-term US shipping flexibility, but EIR said the measure is unlikely to materially affect global oil prices given broader market forces.

Read More »

Equinor begins drilling $9-billion natural gas development project offshore Brazil

Equinor has started drilling the Raia natural gas project in the Campos basin presalt offshore Brazil. The $9-billion project is Equinor’s largest international investment, its largest project under execution, and marks the deepest water depth operation in its portfolio. The drilling campaign, which began Mar. 24 with the Valaris DS‑17 drillship, includes six wells in the Raia area 200 km offshore in water depths of around 2,900 m. The area is expected to hold recoverable natural gas and condensate reserves of over 1 billion boe. Raia’s development concept is based on production through wells connected to a 126,000-b/d floating production, storage and offloading unit (FPSO), which will treat produced oil/condensate and gas. Natural gas will be transported through a 200‑km pipeline from the FPSO to Cabiúnas, in the city of Macaé, Rio de Janeiro state. Once in operation, expected in 2028, the project will have the capacity to export up to 16 million cu m/day of natural gas, which could represent 15% of Brazil’s natural gas demand, the company said in a release Mar. 24. “While drilling takes place, integration and commissioning activities on the FPSO are progressing well putting us on track towards a safe start of operations in 2028,” said Geir Tungesvik, executive vice-president, projects, drilling and procurement, Equinor. The Raia project is operated by Equinor (35%), in partnership with Repsol Sinopec Brasil (35%) and Petrobras (30%).

Read More »

Nscale Expands AI Factory Strategy With Power, Platform, and Scale

Nscale has moved quickly from startup to serious contender in the race to build infrastructure for the AI era. Founded in 2024, the company has positioned itself as a vertically integrated “neocloud” operator, combining data center development, GPU fleet ownership, and a software stack designed to deliver large-scale AI compute. That model has helped it attract backing from investors including Nvidia, and in early March 2026 the company raised another $2 billion at a reported $14.6 billion valuation. Reuters has described Nscale’s approach as owning and operating its own data centers, GPUs, and software stack to support major customers including Microsoft and OpenAI. What makes Nscale especially relevant now is that it is no longer content to operate as a cloud intermediary or capacity provider. Over the past year, the company has increasingly framed itself as an AI hyperscaler and AI factory builder, seeking to combine land, power, data center shells, GPU procurement, customer offtake, and software services into a single integrated platform. Its acquisition of American Intelligence & Power Corporation, or AIPCorp, is the clearest signal yet of that shift, bringing energy infrastructure directly into the center of Nscale’s business model. The AIPCorp transaction is significant because it gives Nscale more than additional development capacity. The company said the deal includes the Monarch Compute Campus in Mason County, West Virginia, a site of up to 2,250 acres with a state-certified AI microgrid and a power runway it says can scale beyond 8 gigawatts. Nscale also said the acquisition establishes a new division, Nscale Energy & Power, headquartered in Houston, extending its platform further into power development. That positioning reflects a broader shift in the AI infrastructure market. The central bottleneck is no longer simply access to GPUs. It is the ability to assemble power, cooling, land, permits, data center

Read More »

Google Research touts memory-compression breakthrough for AI processing

The last time the market witnessed a shakeup like this was China’s DeepSeek, but doubts emerged quickly about its efficacy. Developers found DeepSeek’s efficiency gains required deep architectural decisions that had to be built in from the start. TurboQuant requires no retraining or fine-tuning. You just drop it straight into existing inference pipelines, at least in theory. If it works in production systems with no retrofitting, then data center operators will get tremendous performance gains on existing hardware. Data center operators won’t have to throw hardware at the performance problem. However, analysts urge caution before jumping to conclusions. “This is a research breakthrough, not a shipping product,” said Alex Cordovil, research director for physical infrastructure at The Dell’Oro Group. “There’s often a meaningful gap between a published paper and real-world inference workloads.” Also, Dell’Oro notes that efficiency gains in AI compute tend to get consumed by more demand, known as the Jevons paradox. “Any freed-up capacity would likely be absorbed by frontier models expanding their capabilities rather than reducing their hardware footprint.” Jim Handy, president of Objective Analysis, agrees on that second part. “Hyperscalers won’t cut their spending – they’ll just spend the same amount and get more bang for their buck,” he said. “Data centers aren’t looking to reach a certain performance level and subsequently stop spending on AI. They’re looking to out-spend each other to gain market dominance. This won’t change that.” Google plans to present a paper outlining TurboQuant at the ICLR conference in Rio de Janeiro running from April 23 through April 27.

Read More »

Amazon Middle East datacenter suffers second drone hit as Iran steps up attacks

Amazon was contacted for comment on the latest Bahrain drone incident, but said it had nothing to add beyond the statement in its current advisory. Denial of infrastructure Doing the damage is the Shaheed 136, a small and unsophisticated drone designed to overwhelm defenders with numbers. If only one in twenty reaches its target, the price-performance still exceeds that of more expensive systems. When aimed at critical infrastructure such as datacenters, the effect is also psychological; the threat of an attack on its own can be enough to make it difficult for organizations to continue using an at-risk facility.  Iran’s targeting of the Bahrain datacenter is unlikely to be random. Amazon opened its ME-SOUTH-1 AWS presence in 2019, and it is still believed to be the company’s largest site in the Middle East. Earlier this week, the Islamic Revolutionary Guard Corps (IRGC) Telegram channel explicitly threatened to target at least 18 US companies operating in the region, including Microsoft, Google, Nvidia, and Apple. This follows similar threats to an even longer list of US companies made on the IRGC-affiliated Tasnim News Agency in recent weeks. That strategy doesn’t bode well for US companies that have made large investments in Middle Eastern datacenter infrastructure in recent years, drawn by the growing wealth and influence of countries in the region. This includes Amazon, which has announced plans to build a $5.3 billion datacenter in Saudi Arabia, due to become available in 2026. If this is now under threat, whether by warfare or the hypothetical possibility of attack, that will create uncertainty.

Read More »

Data Center Jobs: Engineering, Construction, Commissioning, Sales, Field Service and Facility Tech Jobs Available in Major Data Center Hotspots

Each month Data Center Frontier, in partnership with Pkaza, posts some of the hottest data center career opportunities in the market. Here’s a look at some of the latest data center jobs posted on the Data Center Frontier jobs board, powered by Pkaza Critical Facilities Recruiting. Looking for Data Center Candidates? Check out Pkaza’s Active Candidate / Featured Candidate Hotlist Power Applications Engineer Pittsburgh, PA This position is also available in: Denver, CO and Andrews, SC.  Our client is a leading provider and manufacturer of industrial electrical power equipment used in industrial applications for mission critical operations. They help their customers save money by reducing energy and operating costs and provide solutions for modernizing their customer’s existing electrical infrastructure. This company provides cooling solutions to many of the world’s largest organizations and government facilities and enterprise clients, colocation providers and hyperscale companies. This career-growth minded opportunity offers exciting projects with leading-edge technology and innovation as well as competitive salaries and benefits. Electrical Commissioning Engineer Ashburn, VA This traveling position is also available in: New York, NY; White Plains, NY;  Dallas, TX; Richmond, VA; Montvale, NJ; Charlotte, NC; Atlanta, GA; Hampton, GA; New Albany, OH; Cedar Rapids, IA; Phoenix, AZ; Salt Lake City, UT;  Kansas City, MO; Omaha, NE; Chesterton, IN or Chicago, IL. *** ALSO looking for a LEAD EE and ME CxA Agents and CxA PMs. ***  Our client is an engineering design and commissioning company that has a national footprint and specializes in MEP critical facilities design. They provide design, commissioning, consulting and management expertise in the critical facilities space. They have a mindset to provide reliability, energy efficiency, sustainable design and LEED expertise when providing these consulting services for enterprise, colocation and hyperscale companies. This career-growth minded opportunity offers exciting projects with leading-edge technology and innovation as well as competitive

Read More »

No joke: data centers are warming the planet

The researchers also made use of a database provided by the International Energy Agency (IEA) that the authors pointed out contains more than 11,000 locations worldwide, of which 8,472 have been detected to dwell outside of highly dense urban areas. The latter locations were then used to “quantify the effect of data centers on the environment in terms of the LST gradient that could be measured on the areas surrounding each data center.” Asking the wrong question Asked if AI data centers are really causing local warming, or if this phenomenon is overstated, Sanchit Vir Gogia, chief analyst at Greyhound Research, said, “the signal is real, but the industry is asking the wrong question. The research shows a consistent rise in land surface temperature of around 2°C  following the establishment of large data centre facilities.” The debate, however, “has quickly shifted to causality: whether this is driven by operational heat from compute, or by land transformation during construction. That distinction matters scientifically, but it does not change the strategic implication.” Land surface temperature, said Gogia, is not the same as air temperature, and that gap will be used to challenge the findings. “But dismissing the signal on that basis would be a mistake,” he noted. “Data centers concentrate energy use, replace natural surfaces with heat-retaining materials, and continuously reject heat into the environment. Those are known drivers of thermal change.” He added, “the uncomfortable truth is this: Even if the exact mechanism is debated, the outcome aligns with first principles. Infrastructure at this scale alters its surroundings. The industry does not yet have a clean way to separate construction impact from operational impact, and that ambiguity makes the risk harder to model, not easier. This is not overstated, it is under-interpreted.” Location strategy must change But will the findings change

Read More »

Schneider Electric Maps the AI Data Center’s Next Design Era

The coming shift to higher-voltage DC That internal power challenge led Simonelli to one of the most consequential architectural topics in the interview: the likely transition toward higher-voltage DC distribution at very high rack densities. He framed it pragmatically. At current density levels, the industry knows how to get power into racks at 200 or 300 kilowatts. But as densities rise toward 400 kilowatts and beyond, conventional AC approaches start to run into physical limits. Too much cable, too much copper, too much conversion equipment, and too much space consumed by power infrastructure rather than GPUs. At that point, he said, higher-voltage DC becomes attractive not for philosophical reasons, but because it reduces current, shrinks conductor size, saves space, and leaves more room for revenue-generating compute. “It is again a paradigm shift,” Simonelli said of DC power at these densities. “But it won’t be everywhere.” That is probably right. The transition will not be universal, and the exact thresholds will evolve. But his underlying point is powerful. As rack densities climb, electrical architecture starts to matter not only for efficiency and reliability, but for physical space allocation inside the rack. Put differently, power distribution becomes a compute-enablement issue. Distance between accelerators matters, too. The closer GPUs and TPUs can be kept together, the better they perform. If power infrastructure can be compacted, more of the rack can be devoted to dense compute, improving the economics and performance of the system. That is a strong example of how AI is collapsing traditional boundaries between facility engineering and compute architecture. The two are no longer cleanly separable. Gas now, renewables over time On onsite power, Simonelli was refreshingly direct. If the goal is dispatchable onsite generation at the scale now being contemplated for AI facilities, he said, “there really isn’t an alternative

Read More »

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.

Read More »

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

Read More »

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

Read More »

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

Read More »