New Data Center Developments: March 2025

The demand for new data centers continues to rise, driven by the exponential growth of cloud computing, artificial intelligence, and digital transformation across industries. With new projects being announced weekly, staying updated on the latest developments in the data center sector can be challenging. To keep you informed, here’s a roundup of some of the most significant data center expansions and investments from the past month.

Recent research from CBRE reveals that data center vacancy rates have reached an all-time low, prompting a surge in new developments.

• OpenAI, SoftBank Group, and Oracle are finalizing site selections in Texas for new data center campuses to support AI-driven workloads. Additional expansion plans are being considered in multiple states across the U.S.
• Amazon is set to invest $100 billion this year in cloud infrastructure, including data centers and AI-focused hardware, to meet growing demand.
• Apple has announced plans to expand its data center footprint in Arizona, Oregon, Iowa, Nevada, and North Carolina, further strengthening its cloud and AI services.
• Iron Mountain has started construction on its first Miami data center (MIA-1), a 16 MW facility strategically positioned to serve the Southeast market.
• Aligned Data Centers is growing its presence in Texas with a new campus in the Dallas-Fort Worth area, catering to AI and enterprise demand.

Other notable developments include:

• Dominion Energy reports a near doubling of data center power demand in Virginia over the last year.
• Amazon faces regulatory hurdles in Minneapolis over a proposed data center project.
• Industry leaders are gathering in Salt Lake City for the Advancing Data Center Construction West conference from March 17–19.

The rapid expansion of digital infrastructure in Latin America continues to drive new investments in data centers.

• ODATA has energized 200 MW at its DC QR03 campus in Querétaro, Mexico, with plans to double capacity to 400 MW to meet hyperscale demand.
• Elea Data Centers is scaling up in São Paulo, Brazil, with a 50 MW AI-ready facility designed to enhance efficiency and sustainability.

Tecto has announced a new 200 MW hyperscale data center in São Paulo, fully powered by renewable energy, to support AI, cloud, and machine learning applications.

Major European markets are seeing increased investment in AI and cloud infrastructure.

• Brookfield Asset Management plans to invest €20 billion ($20.7 billion) in France to develop AI-ready data centers and supporting infrastructure.
• DC01UK, a £4 billion ($5.1 billion) hyperscale campus in the UK, has received approval and will become one of Europe’s largest AI and cloud hubs.
• Yondr Group has begun construction on a 40 MW expansion at its Slough, UK, campus, bringing total capacity beyond 100 MW.
• Virtus Data Centres is entering Italy with a 70 MW facility in Milan to cater to increasing demand from hyperscalers and enterprises.
• Verne has acquired land in Helsinki, Finland, for a 70 MW data center to support high-performance computing and AI workloads.

Tech giants and investors are expanding their data center footprints across the Asia-Pacific region.

• TikTok has pledged $8.8 billion for data center hosting in Thailand over the next five years to support its growing user base.
• DeepSeek, a Chinese AI startup, is driving demand for high-capacity data centers to handle AI workloads efficiently.
• LG Electronics and the South Korean government are collaborating on what is set to become the world’s largest AI data center.
• Goodman Group has secured $2.6 billion to expand its global network of AI-ready data centers.

Other key developments include:

• GDS Holdings is considering a U.S. IPO for its international data center division.
• CtrlS has opened a new data center park in Chennai, India.

AirTrunk is expanding its cloud and AI data center platform in Johor, Malaysia.

The Middle East and Africa are attracting significant investments in AI-driven data centers and network expansion.

• DataVolt is developing a $5 billion net-zero AI data center in Neom, Saudi Arabia, targeting 1.5 GW of renewable-powered capacity.
• Ooredoo Group has partnered with Alcatel Submarine Networks to construct the Fibre in Gulf (FIG) submarine cable, enhancing connectivity across the region.
• Axian Telecom has secured a $160 million loan from the African Development Bank to upgrade its digital infrastructure across nine countries.

The global data center industry continues to expand at an unprecedented pace, with significant investments aimed at meeting the growing demands of AI, cloud computing, and digital transformation. From North America’s AI-driven expansion to Europe’s hyperscale hubs and Asia-Pacific’s booming infrastructure, the future of data centers remains dynamic and competitive.

Staying informed about these developments is key to understanding how the digital world is evolving. Keep an eye on these trends as we move further into 2025.

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