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Data Center View - February 28, 2025 - AREP closes $309 million fund

Data Center View - February 28, 2025 - AREP closes $309 million fund

AREP raises $309 million. Chevron to build has plants. NextEra partners with GE Vernova. Prometheus appoints new CTO. Microsoft names new director. Data center boom in Georgia. Two new data center deals.

Matt H
February 28, 2025

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NEWS ROUNDUP

FUNDRAISING: AREP closes $309 million fund. American Real Estate Partners (AREP) has announced the closing of its fourth real estate GP fund, AREP Strategic Opportunity Fund IV, with $309 million in equity commitments. The fund will be used to expand PowerHouse, AREP’s data center platform. “This $309 million raise signals both tremendous growth and a bold shift in AREP’s capacity to scale and lead,” said AREP President and Co-Founder Brian Katz.

ENERGY: Chevron to build gas plants to power AI data centers. Chevron has announced plans to develop natural gas-powered plants adjacent to data centers in the U.S. Southeast, Midwest, and West, as demand for AI infrastructure surges. The second-largest U.S. oil and gas producer is partnering with investment firm Engine No. 1 and electric services provider GE Vernova (GEV.N) to deliver up to 4 gigawatts of power—enough to supply electricity to approximately 3 million homes. The move comes as AI computing demands skyrocket, with Jeff Gustavson, president of Chevron New Energies, emphasizing that energy consumption will continue to grow despite recent market volatility.

PARTNERSHIP: NextEra partners with GE Vernova. NextEra Energy has announced a strategic partnership with GE Vernova to develop gas-fired power generation aimed at meeting the surging energy demands of data centers. The company is also moving forward with efforts to restart the idled Duane Arnold Energy Center, a nuclear power plant in Iowa, which could further bolster power supply for energy-intensive industries. John Ketchum, CEO of NextEra Energy, emphasized that the framework agreement with GE Vernova will unfold over the next four years.

PEOPLE MOVES: Prometheus Hyperscale appoints new CTO. Prometheus Hyperscale, a developer of sustainable hyperscale data centers, has appointed John Gross as Chief Technology Officer. Gross, who has served as the company’s lead engineering consultant for nearly four years, played a pivotal role in developing Prometheus Hyperscale’s proprietary liquid cooling system, which reduces energy consumption by up to 50% compared to traditional air-cooled methods. His appointment follows several major leadership moves at Prometheus Hyperscale, including the addition of Adam Mirick as a Senior Advisor and the appointment of former BP CEO Bernard Looney as Chairman of the Board of Directors. Trenton Thornock, Founder and CEO of Prometheus Hyperscale, emphasized the significance of Gross’s leadership: “John’s expertise in high-performance compute infrastructure has been instrumental in shaping our unique data center designs. I am honored to have him officially join the team as we set new benchmarks for sustainable digital infrastructure.”

PEOPLE MOVES: Microsoft names new Director of Energy Infrastructure. Microsoft has named Erin Henderson as its new Director of Energy Infrastructure. Henderson, who joined Microsoft in late 2023 as head of nuclear development acceleration, was instrumental in the company’s landmark 835MW power purchase agreement (PPA) with Constellation to revive the Three Mile Island nuclear power plant. Henderson’s appointment is part of Microsoft’s broader effort to build an energy infrastructure technologies team, with ongoing recruitment for key transmission technology roles across North America, APAC, and EMEA.

READ: Data center boom in Georgia.