5 Notable Data Center Links for June 6 2026
Google to Rent AI Compute Power from SpaceX, Quantum Computing IPO is Upsized
Each week I curate 5 links from the data center sector that I find particularly interesting, with my commentary on why they merit your attention.
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SPOILER ALERT - One of this week’s most interesting stories is Google’s agreement to use a “virtual power plant” to help meet 100 megawatts of data center power demand on the PJM grid. It’s a novel solution that will be the focus of this week’s Data Center Richness podcast with energy expert Elisa Wood. Not subscribed yet? You can subscribe on YouTube or audio so you won’t miss it when it drops.
5 Notable Data Center Links
Google to Pay SpaceX $920 Million A Month for AI Compute - As it prepares for its IPO, SpaceX has inked a deal with Google that will bring in $920 million a month by providing AI compute capacity to the search giant. Google will use about 110,000 Nvidia GPUs, CPUs memory and other components housed in SpaceX’s data centers, according to an SEC filing. The agreement spans from October of this year through June 2029, representing roughly $30 billion in revenue. “This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected,” Google said in a statement to TechCrunch. Last month, Anthropic announced a deal to use all of SpaceX’s compute capacity at its Colossus 1 data center in Memphis, paying roughly $1.2 billion per month. The two deals represent a major shift for SpaceX, which built its Memphis-area data centers to support xAI. The company is now set to make more than $2 billion a month renting out AI compute capacity, much like a neocloud.
ERCOT Advances New Rules for Data Center Expansion (E&E News) - “Batch Zero” is nearly here. The Electric Reliability Council of Texas (ERCOT) this week approved new rules that will govern how data centers and other large loads connect to the grid in Texas. The new guidelines seek to prioritize connection requests for more than 430 gigawatts of capacity, using “batches” to group applicants based on fees, site control requirements and other milestones that demonstrate project readiness. This will kick off a scramble to be included in the first group of approvals (Batch Zero) as data center developers seek speed to power. Texas has become the focal point for AI data center development in the U.S., prompting projections that it will soon overtake Virginia as the world’s largest data center market. ERCOT’s passage of new rules is a key step in enabling many of these projects to move forward. The new rule package also includes guidelines for data centers on curtailment as Provisional Controllable Load Resources (PCLR). Fellow Substack author Arushi Sharma Frank was a key player in advancing this approach, and provides an overview and explanation of PCLR on her Substack. The ERCOT regs still need final approval from the Public Utility Commission of Texas, which is expected on June 18.
Quantum Computing Specialist Quantinuum Goes Public - Quantum computing company Quantinuum raised $1.68 billion in an upsized IPO and began trading Thursday on the Nasdaq market. Quantinuum was founded in 2021 out of a merger of Honeywell’s quantum computing division and UK-based Cambridge Quantum. From an infrastructure perspective, Quantinuum is interesting because it uses trapped-ion quantum computing, which can operate at or near room temperature with minimal cooling, as opposed to superconducting quantum systems that rely on dilution refrigeration and temperatures near absolute zero. As quantum computing advances, the infrastructure question gets more interesting. Will these systems live in data centers, or only in highly specialized facilities at universities and giant tech firms? Most likely “all of the above,” but it’s interesting to track, and I’ll be exploring this more in the future.
AI Data Centers Squeezing Memory Supply, Coalition Warns - It’s no secret that there’s not enough memory to go around. The AI data center sector’s appetite for high-bandwidth memory (HBM) is placing it in the crosshairs of industry groups representing makers of telecom, automotive and medical devices. A coalition of these groups is warning the Trump Administration that memory shortages will impact the availability and pricing for essential goods and services. "Expanding artificial intelligence (AI) data centers consume an enormous share of available memory chip capacity," the coalition wrote. "The result has been an unprecedented surge in the price of memory chips and reduced supply of these chips for manufacturing and consumer-facing industries." Via DCK.
Compass Datacenters Commits $15 Million for Community Animal Shelter - Amid community resistance, data center developers are looking for new ways to build goodwill and support the places where they are building. This week, Ellis County and Compass Datacenters announced a proposed $15 million grant to fund the construction of a new, state-of-the-art municipal animal shelter. The SPCA of Texas closed its Ellis County regional care center in April 2025, leaving local rescue volunteers working overtime to keep animals safe. “We plan to be a 100-year neighbor to Ellis County, and this is part of what that looks like,” said Chris Crosby, CEO of Compass Datacenters. “The volunteers held this together for a year on grit and goodwill. Supporting a new municipal animal shelter is a natural extension of that commitment and represents the next chapter in our ongoing investment in the people and future of Ellis County."
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