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Industry Insights

Weekly Digest: U.S. Data‑Center Construction News (Jan 6 – Jan 12, 2026)

Weekly US Data‑Center Construction Digest (Jan 6 – 12, 2026)

Overview

The past week saw several major U.S. data‑center developments announced or updated. Hyperscale providers and energy investors continued to plan massive AI‑ready campuses, often pairing large parcels of land with new power infrastructure. Local governments considered zoning and environmental approvals, and community pushback remained a common theme. Highlights include Nebius’s 800‑MW campus in Missouri, new projects in Indiana, Texas, Michigan and Arkansas, updates on government solicitations, and the tabling of an Amazon project in Ohio due to missing details. The table below summarizes each project with status, size, investment and timeline.

Digest of Announcements (Jan 6–12)

Developer / Project Location & Scale Investment & Timeline Project Status* Notes & Contractors
Nebius – Kansas City campus Independence, Missouri – Ten‑building campus on ~400 acres at Eastgate Commerce Center; 2.5 M sq ft of data‑center space; requires 800 MW of power and uses closed‑loop cooling. Nebius will build a privately financed power plant at the retired Blue Valley Power Plant to supply the campus. First 250 MW to be delivered by Oct 2027, expanding to 1.1 GW by Dec 2029, with the first phase of the campus opening in 2028. Planning / Early development – land purchased Dec 2025; construction expected to start this year. The campus will use closed‑loop cooling and aims to partner with local community. Power plant financing is separate and includes 250 MW natural‑gas generation initially, with potential expansion to 1.1 GW.
RadiusDC – Plainfield/Indianapolis campus Plainfield, Indiana – 31‑acre site adjacent to a new substation; plan calls for two buildings (~100,835 sq ft each) delivering 24 MW of IT capacity. Design replicates the company’s Nashville facility. The campus has planning‑commission approval; timelines for construction and energization have not yet been published. Planning / Approved – initial planning approvals secured. RadiusDC markets the site as an edge‑oriented colocation campus. A future “Indy II” building could be added once the first facility is operational.
Energy Ranch – San Antonio region 60 miles south of San Antonio, Texas – 1,500+ acre data‑center and energy campus near natural‑gas pipelines. Developers HC Capital Partners and Herrmann Family Companies plan a staged build; the first phase requires $2–4 billion and aims to deliver capacity 24‑30 months after construction begins. Planning – site selection and infrastructure planning; construction start not yet announced. Wrangler Infrastructure (an HC division) will develop the energy infrastructure. The campus targets hyperscale AI workloads and may use natural‑gas power.
Microsoft – Castroville data center Castroville, Texas – A 195,670‑sq‑ft, one‑story data center (project SAT 82) on Farm to Market Road 471 N. Construction scheduled to begin mid‑Aug 2026 with completion by Jun 2028; estimated cost $400 million. Planning – filings with the Texas Dept. of Licensing and Regulation indicate future construction. Part of Microsoft’s wider build‑out near San Antonio; the facility will contain Tier‑II IDF rooms and AZNG networks.
Solstice Data – Allen Park facility Allen Park, Michigan – Proposed two‑story data center with 26 MW of power; data hall ~52,898 sq ft. No construction schedule yet; the planning commission postponed approval after hundreds of residents signed a petition demanding more scrutiny. Planning (stalled) – local officials seek further information on tax subsidies and utility costs. Project faces strong community opposition; the developer may revise plans to address noise and environmental concerns.
AVAIO Digital – “Leo” data hub Pulaski County (north of Little Rock), Arkansas – 760‑acre campus dubbed Leo. Phase 1 includes a 150‑MW grid power contract from Entergy and will deliver a compute/data hub with potential to scale to 1 GW. Initial capital cost $6 billion with plans to exceed $21 billion at full build‑out. Construction of the first data‑center module begins Q1 2026 with completion by June 2027. Under development – groundbreaking slated for Q1 2026. AVAIO says the campus will use sustainable cooling, on‑site natural‑gas power, rainwater recapture and rooftop solar. It will create ~500 permanent jobs.
SB Energy / Stargate – Milam County data center Milam County, Texas – Plans for a 1.2 GW data‑center powered by solar and battery storage. This is part of the Stargate partnership between SB Energy (SoftBank), OpenAI and Oracle. SB Energy received a $1 billion investment to build multi‑GW solar‑plus‑storage campuses that provide firm capacity for AI computing. The 1.2‑GW facility will deliver the first capacity in 2026. Planning – site development underway; details on parcels and timeline remain sparse. The project is one element of a planned 10‑GW compute pipeline for OpenAI; it underscores the trend toward renewable‑powered AI campuses.
US DoD – AI data‑center build‑out RFP U.S. Department of Defense solicits proposals to lease land near four military bases for AI data centers: Fort Hood, TX (207 acres with 138 kV & 345 kV transmission lines and natural‑gas pipeline), six parcels at Fort Bragg, NC (734 acres total), Fort Bliss, TX, and Dugway Proving Ground, UT. The solicitation invites developers to propose facilities with new power generation and long‑term leases; no investment amounts yet. Responses are due later in 2026. Planning (RFP stage) – early procurement phase. DoD wants to leverage underused land for AI workloads and is considering on‑site energy generation; projects must provide at least 100 MW of IT load.
Crusoe & Tallgrass – Project Jade Cheyenne, Wyoming – Data‑center campus powered by Tallgrass’s 1.8 GW gas‑fired generation (BFC Power and Cheyenne Power Hub). The campus could eventually scale to 10 GW and cost $50 billion. The initial energy infrastructure represents a $7 billion investment. Data‑center buildings are expected to start receiving power in 2027. Planning / Early development – the project has state support and environmental permitting underway. Crusoe and Tallgrass will use natural‑gas turbines and closed‑loop cooling to reduce water consumption. Community groups have raised concerns about land and water impacts.
AWS (Amazon) – Wilmington data‑center campus Wilmington, Ohio – Planned 471‑acre campus near US 68. AWS proposes to invest $4 billion and create at least 100 permanent jobs; the site would also deliver $25 million in infrastructure improvements (sewers, water main, water tower, road upgrades). The project has been tabled by the Wilmington Planning Commission due to incomplete traffic, lighting and water studies. A new hearing is scheduled for Jan 15, 2026. Planning (delayed) – site plan approval postponed; no construction permits yet. Commission members criticized AWS for vague answers and for not disclosing PFAS (forever chemicals) usage in water; the project’s status depends on updated studies and community consultation.

Key Trends & Insights (Jan 6–12)

  1. Mega‑campuses with bespoke power infrastructure: Developers are proposing gigawatt‑scale campuses that integrate their own power plants or renewable assets. Nebius’s Missouri project includes a privately financed gas power plant with expansion to 1.1 GW, while AVAIO’s Arkansas hub combines grid contracts with on‑site gas, solar and rain‑water recapture. SB Energy’s 1.2‑GW Stargate campus will rely on solar and battery storage, reflecting a shift toward renewable‑supported AI workloads.
  2. Rise of AI‑optimised edge and mid‑market facilities: RadiusDC’s 24‑MW campus near Indianapolis targets low‑latency edge workloads, and Microsoft’s smaller 195‑k sq ft build in Castroville shows hyperscalers still need regional capacities. Such projects contrast with multi‑GW mega‑campuses and diversify geographic footprints.
  3. Community and regulatory friction: Several projects faced delays or backlash. The Wilmington, Ohio commission tabled Amazon’s $4 billion campus due to inadequate studies; Allen Park, Michigan residents petitioned against a 26‑MW facility; and the DoD’s solicitation underscores the need for on‑site generation and environmental compliance. Local opposition is increasingly shaping project timelines.
  4. State and federal initiatives: The U.S. Department of Defense’s RFP opens military land for AI data centers, signaling federal interest in building government‑owned compute facilities. State economic development agencies (e.g., Arkansas) are supporting large investments like AVAIO’s $6 billion campus.
  5. Energy‑company involvement: Oil‑and‑gas investors and energy firms (HC Capital Partners, Herrmann Family, Tallgrass) are entering the data‑center market, reflecting the convergence of energy and digital infrastructure. Their projects often pair natural‑gas turbines with data‑center development, providing bridging power while renewable capacity scales.
  6. Emphasis on sustainable design: Several proposals highlight closed‑loop cooling systems, rainwater reuse and renewable energy. Nebius, AVAIO, and Crusoe all plan to minimize water use. These features aim to address environmental concerns and secure community support.

Overall, the last week’s news shows that U.S. data‑center development is accelerating toward mega‑scale AI campuses and edge‑friendly facilities. However, obtaining approvals requires careful attention to local infrastructure, environmental sustainability and community engagement.