Data Center News Roundup: Cyxtera’s Bankruptcy and GPT-4 in the U.S. Government

With data center news moving faster than ever, we want to make it easy for data center 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.

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1. Federal, State, and Local Governments Get GPT-4 Access

Microsoft’s Azure Government customers — including the Department of Defense, the Department of Energy, and NASA — will soon be able to use OpenAI’s GPT-4 model to answer research questions, produce code, and summarize field reports.

After Samsung employees accidentally leaked sensitive company data via ChatGPT in April, Microsoft, addressing security concerns, claims that data collected from its Azure Government users will not be used to train AI models.

2. What’s the Deal With AI Tracking?

In other AI/ML news, artificial intelligence is making its way into digital productivity software. The Washington Post reported on Thursday a new trend in workplace tools and apps that leverages AI “to combat burnout, reduce stress levels, and boost productivity and engagement.”

However, as is often the case in productivity monitoring, the flip side of these tools is less glamourous, as companies use tracking data to excuse their own failings and justify cuts and layoffs.

3. Bain Capital Wants to Take Chindata Private

Amid an increased demand for data center and cloud services, private investment firm Bain Capital has proposed a $2.93 billion deal to take the Chinese data center operator Chindata private. According to Reuter’s, “Bain’s proposal values each American depositary share of Chindata at $8, representing a premium of more than 27% to its last closing price.”

4. Virginia Data Centers Pose Threat to Historical Sites

New data center construction in rural Virginia, including a massive “Digital Gateway” development from Compass and QTS, could impact significant Civil War era locations and sites associated with the history of slavery and emancipation. According to one report, the Digital Gateway project could have an “adverse effect” on these historical sites as it alters the previously preserved landscape — causing concern among the region's historical conservationists.

5. Data Center Provider Cyxtera Files for Bankruptcy

After spending months looking for a buyer, colo provider Cyxtera Technologies has filed (unexpectedly) for Chapter 11 bankruptcy. The Florida-based company aims to restructure through a pre-packaged agreement with lenders — with the hopes of eventually finding profitability.

Last year, across 60 locations and over 2,300 customers, Cyxtera saw net loss of $355.1 million. Notably, of these 60 locations, over a third are leased from other data center providers, including 15 from Digital Reality.

Other Great Data Center Reads on DCK This Week

What's the Difference Between ODM and OEM Manufacturing Models? With so many acronyms in the data center industry, it can sometimes be difficult to differentiate between them. Here, we define two popular manufacturing models — ODMs and OEMs — and break down their distinguishing features.

Are Underwater Data Centers Truly Practical? Will your next data center be located underwater? Despite a growing interest in underwater data centers, it’s quite possible they’ll never become a realistic option. Find out why companies like Microsoft are hopeful — and why many industry experts remain skeptical.

Colocation Data Center vs. Private Data Center: Which Is Right for You? It’s the perennial question: Where should you store your data? In this guide, regular DCK contributor Christopher Tozzi assesses the benefits and drawbacks of colocation for hosting your workloads.

That’s all for this week. Which of these stories is most important to you? Let us know in the comments below!