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California Data Center Intel
Latest data center news, projects, power and policy across California — updated daily.
Recent California data center news
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Pennsylvania coal-plant to be turned into gas-powered data centre campus
The Homer City Generating Station, previously the largest coal-burning power plant in Pennsylvania, will be repurposed into a 4.5GW combined-cycle gas plant. Developed by Homer City Development (HCD) and constructed by Kiewit Power Constructors Co., the facility is expected to commence operation in 2027, utilizing seven GE Vernova 7HA.02 turbines. The plant will leverage existing transmission lines and natural gas from the Marcellus Shale Region to support hyperscale data centers, indicating a shift in infrastructure use from coal to natural gas for powering AI and cloud computing applications.
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Lumai Secures More Than $10M Investment to Slash AI Processing Costs, Boost Performance and Improve Data Center Sustainability
Lumai, an AI accelerator startup spun out of the University of Oxford, secured over $10 million in investment led by Constructor Capital and supported by existing investor IP Group and others. The funding will advance Lumai’s optical computing technology aimed at reducing AI inference costs, boosting performance, and improving sustainability in data centers. Its technology is designed to cut energy consumption to just 10% of current methods while delivering significantly higher computational performance. This investment comes at a critical time as data center power use in the U.S. is projected to triple by 2028, consuming up to 12% of the country’s power.
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🌎 CoreWeave IPO’s jolt to power demand #239
CoreWeave, a startup operating AI-tailored data centers, went public on March 29 with a valuation of $20bn after raising $1.5bn at $40/share. The IPO’s performance has raised concerns about the demand for AI infrastructure and its impact on energy needs, particularly as Microsoft reduces its data center investments. This decline in projected energy demand could affect future investments in clean power sources like nuclear and geothermal energy.
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US AI Policy Is Stuck in Training Mode
The article discusses the misalignment of U.S. AI policy with the current state of AI innovation. The U.S. policymakers have prioritized access to AI compute primarily for model training while failing to adapt to the increasing importance of inference in AI performance. Companies like Microsoft are building data centers abroad to support localized inference in AI systems. The U.S. energy policy also emphasizes support for energy production for AI training while overlooking the need for energy-efficient inference models.
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Pennsylvania Capital-Star: Pa. Public Utility Commission Sets Hearing on AI Data Centers’ Impacts on Electricity
The Pennsylvania Public Utility Commission (PUC) announced a hearing on April 24, 2025, to evaluate the impact of AI data centers on the state’s electricity infrastructure and economy. PUC Chairperson Stephen DeFrank emphasized the need to protect consumers while facilitating economic growth and technological advancement. The commission will investigate two major data center projects: Constellation Energy’s $1.6 billion restart of its nuclear power plant at Three Mile Island to provide carbon-free electricity for Microsoft, and Amazon Web Services’ $650 million data center purchase near a nuclear plant that will consume energy equivalent to 900,000 homes.
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Landing a data center is worth the environmental tradeoffs, Illinois towns say
The proposed data center by Equinix, Inc., will occupy 340 acres in Minooka, Illinois, requiring 3 million gallons of water daily and 700 megawatts of electricity. This demand constitutes a significant portion of Minooka’s drinkable water allocation. Mayor Ric Offerman stated that the project could generate substantial tax revenue and jobs for the village. However, concerns persist regarding the environmental impact and the state’s commitment to ending fossil fuel use by 2045. Equinix is negotiating to finalize its plans, aiming to begin construction by 2026 and complete the site by 2034.
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Secretary of State Peter Kyle speech to Nvidia GTC 2025
The UK government has announced plans to create AI Growth Zones to foster investment in compute infrastructure across the country. This initiative aims to transform underused land from the industrial age into sites for powerful data centres, with one site potentially hosting close to 2 GW of power. Local leaders have responded positively, providing over two hundred proposals to support this initiative. This move is driven by the recognition that energy availability is critical for the AI era, and aims to leverage the UK’s scientific capabilities to enhance economic growth.
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ADQ and Energy Capital Partners to launch US$25bn investment partnership in US to expand power generation for energy-intensive industries
ADQ, an Abu Dhabi-based investment and holding company, and Energy Capital Partners (ECP), the largest private owner of power generation and renewables in the United States, have entered into an agreement to establish a 50-50 partnership in new build power generation and energy infrastructure. They plan to invest more than US$25 billion across 25 GW worth of projects focused on meeting the growing power needs of data centres and other energy-intensive industries. The initial capital contribution from both partners is expected to be US$5 billion.
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DeepSeek AI will fuel more data center work
DeepSeek, a China-based company, has garnered attention for its low-cost AI model, suggesting data center power demand may not be as high as previously thought. However, industry experts like John Medina from Moody’s Ratings and Mitchell Osborne from Adolfson & Peterson Construction argue that advancements in AI will lead to increased energy usage as more companies emerge. The demand for power infrastructure is surging, with tech giants such as Amazon and Microsoft rapidly expanding their data center projects. A joint venture involving OpenAI, Softbank, and Oracle is set to invest up to $500 billion in AI infrastructure, further fueling the need for power construction. The U.S. power grid struggles to keep pace with this demand, as projections indicate data center energy use could reach nearly 580 terawatt-hours by 2028.
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Why Geothermal is the Hot Ticket to Low-Carbon Data Centers?
The article discusses the potential of geothermal energy for powering low-carbon data centers.
Tech giants like Amazon, Microsoft, and Meta are expanding quickly, and data centers’ electricity demand is projected to rise significantly, reaching between 325 and 580 TWh by 2028.
The U.S. Department of Energy revealed that geothermal energy could avoid up to 516 million metric tons of CO₂ equivalent emissions by 2050.
Innovations in Enhanced Geothermal Systems are making it feasible for data centers to generate clean and reliable power, potentially supplying up to 15% of power in key data center hubs.
Major investments are being made by companies, including a partnership between Alphabet and NV Energy to secure 115 MW of geothermal power.