Data Center News Roundup: $500B Stargate Project, Data Centers on the Moon?Data Center News Roundup: $500B Stargate Project, Data Centers on the Moon?

In this week’s top data center news, tech giants unveil a major AI infrastructure project, and a US startup claims its lunar ambitions are within reach.

James Walker, Senior Editor

January 24, 2025

4 Min Read
Data Center News Roundup
Image: Alamy

With data center news moving faster than ever, we want to make it easy for industry professionals to cut through the noise and find the most important stories of the week.

The Data Center Knowledge News Roundup brings you the latest news and developments across the data center industry – from investments and mergers to security threats and industry trends.

To keep up to date with all things data centers, subscribe to the Data Center Knowledge newsletter to get content straight to your inbox.

Opening the Stargate

Multibillion-dollar data center announcements continue at pace this month, as a consortium of tech giants unveiled the Stargate Project – a $500 billion initiative to develop AI infrastructure in the U.S. over the next four years.

Backed by SoftBank, OpenAI, Oracle, and MGX – with Arm, Microsoft, and Nvidia as key technology partners – the project aims to construct 10 data centers, including one already underway in Texas. Oracle Chairman Larry Ellison noted that the venture could scale up to 20 facilities, reflecting its expansive vision.

Announced at the White House with U.S. President Donald Trump in attendance, the Stargate Project promises to create the physical and virtual backbone for next-generation AI advancements.

While the news certainly turned heads, industry experts approached the announcement with measured skepticism, highlighting the ambitious scope of the project and the challenges such an initiative could face in execution.

Related:Opening the Stargate: Tech Giants to Invest $500B in AI Data Center Infrastructure

“Even if you have $500 billion to spend on data centers, will you be able to spend it, and will you be able to get the power?” Omdia analyst Alan Howard told Data Center Knowledge. “The timeline to create a data center can be 5+ years if you’re starting from scratch.”

Technologist Robert Scoble added: “The thing I don't get about Stargate is where is the data? With AI you must always follow the data, not the money. The data is what matters and so far, I don’t see a real dataset involved here.”

New Foundations

In other data center development news this month:

  • XTX Markets said it will invest more than €1 billion to develop a large-scale data center campus in Kajaani, Finland.

  • Edged Data Centers cut the ribbon on a new AI-ready data center in Irving, Texas, that brings 24 MW of critical capacity and consumes zero water for cooling.

  • TerraPower and Sabey Data Centers announced plans to collaborate on integrating advanced nuclear plants into Sabey's data center operations.

  • AWS plans to invest at least $11 billion in Georgia to expand infrastructure to support AI and cloud technologies.

  • Castleforge, in partnership with Galaxy Data Centers, has acquired the Redhill Data Center near London, UK.

  • CtrlS unveiled plans for a 40-acre, 600 MW data center in Hyderabad, India.

Related:Nuclear-Powered Data Centers: When Will SMRs Finally Take Off?

Lunar Ambitions

While the Stargate project evokes sci-fi imagery, Lonestar Data Holdings claims it is turning concept into reality by planning the first-ever data center on the moon.

According to a report in Reuters this week, the startup will use SpaceX’s Falcon 9 rocket to launch a “fully assembled data center late next month by integrating it with Intuitive Machines’ moon lander, Athena.”

This isn’t the first time we’ve heard of Lonestar’s lunar ambitions. Data Center Knowledge first covered the company’s plan to place a data center on the moon back in 2022.

In February last year, the Florida-based company announced a successful pilot test of its lunar data storage concept.

We will be watching closely to see how the company’s latest plans develop.

Other Great Reads in DCK This Week

Nuclear-Powered Data Centers: When Will SMRs Finally Take Off?

Interest in nuclear-powered data centers surged in 2024, but it may still be years before the SMR market gains real-world momentum.

What’s Next for Bare-Metal-as-a-Service After Equinix Metal’s Closure?

Related:AI Trends and Predictions 2025 From Industry Insiders

As Equinix Metal faces a planned shutdown, questions arise about the viability of Bare-Metal-as-a-Service (BMaaS) in a cloud-dominated market.

Building the Backbone of AI: Why Infrastructure Matters in the Race for Adoption

AI adoption is surging, but do businesses have the infrastructure to keep up? Interconnection and smart cloud strategies are critical, says Ivo Ivanov, CEO of DE-CIX.

Tritax Buys 74-Acre UK Site to Build a Massive Data Center

The company plans to build a 107 MW facility at the site in Heathrow, west London.

LA Wildfires Raise Burning Questions About AI’s Data Center Water Drain

The explosion of data center demand for AI use is draining water resources. Even with efforts to mitigate cooling demands, municipalities and companies struggle to find a balance.

Data Storage and Analytics Trends and Predictions 2025 From Industry Insiders

IT leaders and industry insiders share their data storage, management, and analytics trends and predictions for 2025.

About the Author

James Walker

Senior Editor, Data Center Knowledge

James Walker is Senior Editor at Data Center Knowledge. He has nearly two decades of experience writing for business and technology publications, with a focus on translating technical issues to make them more accessible and engaging.

Before joining DCK, James was editor of The Daily Swig, an award-winning cybersecurity news website, and his work has been featured in The Times and BBC Online, among other publications.

Subscribe to the Data Center Knowledge Newsletter
Get analysis and expert insight on the latest in data center business and technology delivered to your inbox daily.

You May Also Like