5 Notable Data Center Links, Oct. 4

A $40 Billion Acquisition? Plus Quantum Campuses and GPU Futures

This week DataBank announced $1.1 billion in asset-backed financing to fund future expansion. (Image: DataBank)

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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5 Notable Links

• BlackRock Nears $40 Billion Data Center Deal - For industry watchers, the hot link yesterday was this Bloomberg report suggesting Blackrock may acquire Aligned for $40 billion. It’s good to be cautious about M&A chatter … but whether this deal comes to pass or not, it’s pretty clear that giant global investment firms will continue to use M&A to fortify their growing bets on AI infrastructure. That includes energy, as there are also reports that Blackrock is eyeing a deal for energy firm AES. If you don’t have Bloomberg, DCD has a summary.

• DataBank Raises $1.1 Billion in Hyperscale ABS - Amid all the headlines about speculative MegaGigaProjects, there’s also significant activity in the colocation and interconnection space, like this announcements from DataBank. Its an example of growing providers using asset-backed securitization (ABS) for success-based funding of new projects to support enterprise customers. This is the fifth ABS offering for DataBank, the colo and edge platform for Digital Bridge, which has also used ABS to accelerate growth for its Vantage hyperscale platform (which is now kicking into an even higher gear).

• AI Unicorn Groq Charts Data Center Expansion - NVIDIA may be dominating the AI chip scene, but its rivals are building enough business to scale out their own data center networks. AI startup Groq says it has deployed 12 data centers this year for AI inference, and CEO Jonathan Ross predicts even larger growth next year. Not mentioned in this item, but AI/HPC chip startup Cerebras Systems has also built out at least five data centers for its AI systems. If you don’t get the WSJ, DCD has a summary.

• PsiQuantum To Build First US-Based Utility-Scale Quantum Computer in Chicago - How might quantum computing infrastructure differ from today’s data centers? This is the first large-scale quantum infrastructure project I’ve seen, and seeks to establish Chicago as a leader in this technology. The State of Illinois is providing $500 million in funding, including $200 million for a cryogenic plant to support anchor tenant PsiQuantum and the other tenants at the campus.

• Odd Lots: Trading Markets for GPU Capacity - Are GPUs financial instruments as well as computer hardware? The Odd Lots podcast speaks with veteran trading executive Don Wilson about new indices that provide valuation and trading for GPUs. Wilson’s DRW has created two companies - Silicon Data and Trading Exchange - to provide real-time data on pricing, performance and carbon impact of GPUs. It’s an intriguing intro to how indices and futures markets for GPUs could enable strategies for buying, hedging and presumably securitizing AI hardware.

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