Aug 19 (Reuters) - Vantage Data Centers said on Tuesday
it would spend more than $25 billion to build a 1,200-acre data
center campus in Shackelford County, Texas, as surging demand
for artificial intelligence infrastructure fuels mega-scale
developments.
Backed by private equity firm Silver Lake and asset manager
DigitalBridge ( DBRG/PJ ), Vantage said the 1.4-gigawatt campus,
dubbed "Frontier", is the largest in its global portfolio.
Chatbots such as OpenAI's ChatGPT and Google's Gemini need
massive compute, prompting demand for purpose-built data
centers. These facilities are costly as they require
cutting-edge chips, servers, adequate power and cooling
solutions.
Companies including Alphabet, Microsoft ( MSFT )
and Meta Platforms ( META ) are committing billions of dollars
to expand and create their data center facilities.
Vantage says the construction of the campus has begun, which
will be home to 10 data centers and support ultra-high-density
racks exceeding 250 kilowatts each. The first building is due in
the second half of next year.
Silver Lake was a founding investor in Vantage in 2010.
Vantage CEO Sureel Choksi joined the company from Silver Lake in
2013.
After exiting Vantage in 2017, Silver Lake said it was
invited back on a proprietary basis in 2023 to support capital
raising and co-lead a $9.2 billion equity financing with
DigitalBridge ( DBRG/PJ ) in 2024.