Data Center View - August 13, 2025 - Oracle and OpenAI to add 4.5GW of data center capacity in the US

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NEWS ROUNDUP

PARTNERSHIP: Oracle and OpenAI to add 4.5GW of Stargate data center capacity in the US. Oracle and OpenAI have agreed to develop an additional 4.5 gigawatts of Stargate data center capacity in the United States, bringing total Stargate capacity under development to over 5 GW and more than 2 million chips. The expansion, part of OpenAI’s White House commitment to invest $500 billion in 10 GW of U.S. AI infrastructure over four years, is now expected to exceed initial targets thanks to momentum with partners including Oracle and SoftBank. The new facilities are projected to create over 100,000 U.S. jobs across construction, operations, manufacturing, and local services. Construction on the flagship Stargate I site in Abilene, Texas, is progressing, with Oracle delivering Nvidia GB200 racks and OpenAI running early workloads. Microsoft will continue to provide cloud services for OpenAI, including through Stargate.

DEVELOPMENT: Hyperscale Data plans 340MW data center buildout in Michigan. Hyperscale Data unveiled a phased expansion strategy to grow its Michigan data center campus from 30 MW to 340 MW within 44 months, supporting AI, machine learning, and high-performance computing workloads. The plan includes reaching 70 MW over the next 20 months and follows an agreement in principle with the local utility for a 300 MW power increase, plus an additional 40 MW from the local natural gas utility. To maintain financial flexibility, the company filed a $125 million shelf registration, though it does not intend to raise capital immediately. Current operations generate revenue through digital asset mining and colocation services, with the expansion positioned to meet rising AI infrastructure demand. Hyperscale Data aims to transition into a pureplay AI data center platform, divesting its Ault Capital Group subsidiary by year-end 2025, subject to conditions. CEO William B. Horne said the scalable AI-centric platform will allow the company to “scale efficiently and profitably to meet demand.”

FUNDRAISING: Cologix secures $525M ABS to fund hyperscale edge expansion. Cologix closed a $525 million asset-backed securitization backed by its COL4 data center in Columbus, Ohio, marking its fourth ABS issuance since 2021. The five-year fixed-term financing, led by Deutsche Bank Securities with legal counsel from King & Spalding, will support growth across the company’s Scalelogix and Digital Edge portfolio to meet rising demand for inference AI and cloud workloads. CFO Scott Schneider said the transaction reflects investor confidence and will help “scale critical infrastructure” for hyperscale and AI applications. CEO Laura Ortman emphasized the company’s ability to deliver sustainable, high-density interconnection at the edge, noting Cologix’s industry-leading efficiency metrics.

FUNDRAISING: vCompute targets $350M raise for data center acquisitions. vCompute is planning a $350 million capital raise to acquire and automate underperforming data centers. CEO Edward Hawes said the strategy focuses on buying poorly managed facilities and improving efficiency through automation. While Houston’s data center market has historically lagged behind other U.S. cities, activity in the region is picking up, creating opportunities for expansion.

READ: The US aims to be an AI data center powerhouse.

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