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Data Center View - March 31, 2025 - OpenAI and CoreWeave announce partnership

Data Center View - March 31, 2025 - OpenAI and CoreWeave announce partnership

Cathedra sells data center for $21 million. xAI acquires 1 million-SF in Tennessee. $2.1 billion campus proposed in Pennsylvania. Dominion seeks approval for 1GW gas plant. Oregon's data center industry is thriving. Two new data center deals.

Matt H
March 31, 2025

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NEWS ROUNDUP

PARTNERSHIP: OpenAI and CoreWeave announce partnership. CoreWeave announced a landmark deal to deliver AI infrastructure to OpenAI. The contract value for this strategic partnership is up to $11.9 billion. As part of the agreement, OpenAI will also become an investor in CoreWeave through the issuance of $350 million worth of CoreWeave stock. “Partnering with OpenAI on this net new contract underscores CoreWeave's proven ability to deliver reliable and performant infrastructure services, powering AI Innovations for world-leading AI labs,” said Michael Intrator, Co-Founder and CEO of CoreWeave.

DISPOSITION: Cathedra sells 60MW data center. Cathedra Bitcoin has announced the sale of a 60MW Bitcoin mining facility located in North Dakota. The facility was sold to an unnamed third-party Bitcoin miner for a total of $21 million. Cathedra stated it intends to use the proceeds to develop new data centers and acquire additional Bitcoin for its long-term balance sheet reserves. “The sale of the North Dakota facility demonstrates our ability to generate attractive returns for our shareholders through our low-cost construction capabilities, whether by developing to sell or operating these assets ourselves,” said Drew Armstrong, President and COO of Cathedra.

DEVELOPMENT: xAI acquires 1-million-SF property in Tennessee. xAI, has acquired a sprawling 1-million-SF property in Southwest Memphis, Tennessee, according to an announcement made by the Greater Memphis Chamber on Friday. The acquisition marks a significant step in the company’s aggressive expansion of its AI infrastructure as it seeks to solidify its position in an increasingly competitive industry. The new property will bolster xAI’s ambitious plans to expand its Colossus supercomputer, which was initially unveiled in December with the goal of housing at least one million GPUs in the state.

DEVELOPMENT: $2.1 billion data center campus proposed in Pennsylvania. An unnamed developer is planning a $2.1 billion data center campus known as the Wildcat Ridge AI Data Center Campus in Archbald, Pennsylvania. The project, located on 400 acres along Business Route 6 and Wildcat Road, was previously intended for a large housing development before the plans shifted to focus on advanced data infrastructure. The ambitious development will consist of 14 three-story data centers spanning approximately 17.2 million-SF.

ENERGY: Dominion seeks approval for 1GW gas plant. Dominion Energy has filed a request with Virginia's State Corporation Commission (SCC) seeking approval to build and operate a new 1GW natural gas plant. The proposed facility is aimed at bolstering the utility's energy generation capacity to meet surging demand driven largely by the state's expanding data center market. The new plant will comprise four natural gas-powered simple cycle turbines, each providing 250MW of capacity. Dominion has emphasized that the facility will not require new pipelines or transmission infrastructure, streamlining the development process. If approved, construction is expected to commence in 2026, with operations anticipated to begin in 2029.

READ: Oregon’s data center industry is thriving.