Data center capacity

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Microsoft plans to rent data center capacity in Portugal from Nscale: report (MSFT:NASDAQ)
Seeking Alpha· 2025-10-14 18:38
Core Insights - Microsoft plans to rent data center capacity from Nscale in a new facility located in Portugal [2] - The facility will utilize Nvidia's artificial intelligence chips for its operations [2] - The expected opening date for the facility is early next year [2]
Think It's Too Late to Buy Applied Digital Stock? Here's 1 Reason Why the Rally May Continue.
Yahoo Finance· 2025-10-05 19:00
Core Insights - Applied Digital (NASDAQ: APLD) has experienced a significant stock increase of approximately 250% year to date, indicating strong market interest and potential for further growth [1] Company Performance - The stock surged in early June following a deal to provide 250 megawatts of data center capacity to AI hyperscaler CoreWeave, projected to generate around $7 billion in revenue over 15 years [3] - Applied Digital is also positioned to benefit from Microsoft's recent multibillion-dollar deal for additional data center capacity, suggesting a growing demand for its services [3] Industry Context - Hyperscalers like CoreWeave and Microsoft face challenges in securing data center capacity rather than chip access, with potential future shortages due to power constraints [4] - Applied Digital has secured power sources for its data centers, enhancing its competitive advantage in a market where power availability is becoming increasingly critical [4] Future Outlook - The CEO of Applied Digital, Wes Cummins, projects the company could achieve $1 billion in operating profit within the next three to five years, indicating strong future profit potential [5] - The current market capitalization of Applied Digital stands at $7 billion, suggesting the stock may be undervalued relative to its future earnings potential [5]
AI Cloud Firm Northern Data Raided by German Investigators
MINT· 2025-09-26 13:32
Core Viewpoint - German investigators have conducted raids related to Northern Data AG, a technology firm transitioning from crypto mining to artificial intelligence computing, which has led to a significant drop in its share price [1][2][3]. Company Overview - Northern Data AG is a Frankfurt-listed technology firm that has shifted its focus from cryptocurrency mining to artificial intelligence computing, capitalizing on the growing demand for AI resources [1][4]. - The company is majority-owned by Tether Holdings SA, which has also invested in Rumble Inc., a conservative YouTube alternative [5]. Recent Developments - Following the raids, Northern Data's shares fell by as much as 12% to €16.48, reflecting investor concerns [3]. - The company recently announced a leadership change, promoting John Hoffman to co-CEO alongside Aroosh Thillainathan [6]. - Northern Data has 22,000 AI chips under management across Europe, with its main facility located in Boden, Sweden [6]. Strategic Partnerships - Northern Data has signed a deal to provide data center capacity for G42, a state-backed AI firm in Abu Dhabi, indicating its commitment to the AI sector [4].
CoreWeave CEO Says Clients Need More Compute Power
Yahoo Finance· 2025-09-25 20:35
Core View - CoreWeave has signed a significant deal to supply data center capacity to OpenAI, with potential values ranging from $6.5 billion to $22.4 billion [1] Company Insights - The partnership between CoreWeave and OpenAI is expanding, indicating a strong demand for cloud infrastructure services in the AI sector [1] Industry Trends - The deal highlights the growing importance of cloud infrastructure in supporting AI development and operations, reflecting a broader trend in the technology industry [1]
Digital Realty Trust (NYSE:DLR) Conference Transcript
2025-09-17 15:02
Digital Realty Trust (NYSE: DLR) Conference Summary Company Overview - **Company**: Digital Realty Trust - **Date**: September 17, 2025 - **Speaker**: Matt Mercier, Chief Financial Officer Key Points Industry Context - The data center industry is experiencing robust demand, particularly driven by AI-related workloads, which account for approximately 30% to 70% of quarterly bookings, averaging around 50% [7][24]. Capacity and Development - Digital Realty currently operates approximately **3 gigawatts** of capacity and has **750 megawatts** under construction, with **60%** pre-leased [4][17]. - An additional **600 megawatts** of shell capacity is being developed for future data center projects, expected to come online between **2027 and 2028** [5][17]. - The company has **3.5 gigawatts** of land capacity available across its global portfolio, with significant expansions in key markets such as Northern Virginia, Chicago, Dallas, and major Asian markets [6][17]. Demand and Leasing - The company has a backlog exceeding **$850 million**, with over **$1 billion** in gross bookings signed in 2024 [9][17]. - Confidence in leasing the remaining **40%** of the construction pipeline is high, with expectations of **90%+ occupancy** upon delivery [7][17]. Power Constraints and Market Dynamics - Power remains a material constraint in the industry, but there are signs of relief in major markets like Northern Virginia, with capacity expected to be released starting in the second half of **2026** [10][11]. - In contrast, markets like Chicago are facing increasing power constraints, prompting the company to seek expansions in areas like Charlotte and Atlanta, which show significant economic potential [11][12]. Regional Insights - In the APAC region, Singapore and Japan are key markets, with ongoing development and power sourcing efforts [13]. - EMEA markets, particularly Dublin and Frankfurt, are also under power constraints, but the company has secured power for its developments ahead of these constraints [14]. Financial Performance and Guidance - Digital Realty has updated its growth guidance for **2025** from **5%** to **6.5%**, supported by a strong development pipeline and favorable supply-demand dynamics [16][17]. - The company anticipates **4% to 6%** leasing spreads, with a distinction between shorter-term contracts and larger megawatt leases, which are expected to yield higher renewal spreads [18][19]. Supply Chain and Equipment - Long lead times for equipment, particularly electrical components, remain a challenge, with some items taking **12 to 24 months** to procure [21]. - The company has adapted its supply chain during the pandemic to ensure timely delivery of data center capacity [21][22]. Strategic Positioning - Digital Realty's strategy focuses on core major markets with significant cloud development, ensuring a diverse customer base and capacity to meet demand [26][27]. - The company is leveraging joint ventures and private capital to capture opportunities in the hyperscale segment while maintaining a balanced portfolio [28][29]. Conclusion - Digital Realty Trust is well-positioned for continued growth in the data center industry, driven by strong demand, a robust development pipeline, and strategic market expansions. The company is navigating power constraints and supply chain challenges while maintaining a focus on financial stability and growth.
OpenAI plans to pay Oracle $300B for data center capacity: report (ORCL:NYSE)
Seeking Alpha· 2025-09-10 18:33
Core Viewpoint - Oracle's shares surged over 30% following its latest earnings report, indicating strong market confidence in the company's performance and future prospects [2] Group 1: Financial Performance - Oracle reported a significant increase in its stock price, rising more than 30% after the earnings announcement, reflecting positive investor sentiment [2] Group 2: Strategic Partnerships - The company secured a substantial $300 billion deal with OpenAI to provide data center capacity, highlighting its strategic move to enhance cloud computing capabilities [2]
Nebius CEO Arkady Volozh Is $1 Billion Richer After Microsoft AI Deal
MINT· 2025-09-10 09:03
Core Insights - Arkady Volozh, former head of Yandex, has transitioned to the artificial intelligence sector after disentangling from Yandex and leaving Russia [1][3] - Nebius Group NV, Volozh's new venture, has seen a significant increase in share value following a major contract with Microsoft worth up to $19.4 billion [2][4] Company Developments - Nebius Group NV's shares surged by 49% to $95.72 after announcing a five-year contract with Microsoft for data center capacity [2] - Volozh's 13% stake in Nebius is now valued at $2.9 billion, reflecting an increase of approximately $1 billion since the contract announcement [2] Market Context - The contract with Microsoft marks a strategic shift for Nebius, which previously focused on smaller businesses and startups [5] - Volozh anticipates securing more long-term contracts with major AI labs and tech companies, indicating a positive outlook for Nebius in the competitive data center market [5]
CoreWeave acquires data center provider Core Scientific in $9B stock deal
TechCrunch· 2025-07-07 17:37
Group 1 - CoreWeave signed a $9 billion all-stock deal to acquire Core Scientific, a data center infrastructure provider [1] - The acquisition will provide CoreWeave with over 1 gigawatt of data center capacity, sufficient to power more than 850,000 homes, for AI training and inference workloads [1] - Core Scientific, previously focused on Bitcoin mining, will now utilize its GPUs for running and training generative AI models [1] Group 2 - Cloud infrastructure providers are expanding their data center capacity to meet the growing computational demands of AI companies [2] - OpenAI has entered into a deal to rent an additional 4.5 gigawatts of data center capacity from Oracle, enhancing their existing Stargate infrastructure agreement [2]
Data center boom in world's largest market is not slowing down, Dominion Energy says
CNBC· 2025-05-01 16:29
Core Insights - Data center demand remains strong in Northern Virginia, with no signs of slowing according to Dominion Energy executives [1][3][5] - Dominion Energy is closely collaborating with major tech companies investing heavily in data centers for AI model training [2][5] - Despite market speculation regarding potential pullbacks in tech sector investments due to tariffs and economic concerns, data center customers continue to invest in new projects [4][5][6] Company Performance - Dominion Energy has 40 gigawatts of data center capacity in various stages of contracting, indicating robust demand [5] - The company has maintained its full-year operating earnings guidance of $3.28 to $3.52 per share, reflecting confidence in ongoing demand [7] - Dominion's shares rose approximately 1% following the positive outlook on data center demand [7] Industry Trends - Executives from Amazon and Nvidia confirmed at a recent energy conference that data center demand is not slowing down [7] - The tech sector's investment in data centers is driven by the need for rapid expansion to support AI initiatives [6]