From Microsoft and Meta locking in $120 billion in new lease commitments and OpenAI unveiling its first custom AI chip to FERC ordering a sweeping overhaul of how data centers connect to the U.S. grid, it's been another packed stretch for the sector. Plus, liquid cooling that runs “hotter than a hot tub?” Here's a roundup of the latest data center developments.
Market News: $120bn in Leases, OpenAI's Jalapeño Chip
In money moves, Microsoft and Meta signed roughly $120 billion in new future lease commitments last quarter, according to Bloomberg – pushing combined hyperscaler lease obligations past $850 billion. Meta's piece jumped 76% quarter-over-quarter, and the company separately signed a 1.6GW capacity agreement with Crusoe across two Texas and Missouri sites. Not to be outdone, SpaceX inked a $6.3 billion compute deal with startup Reflection AI for Nvidia GB300 capacity at its Memphis-area Colossus 2 facility.
On the silicon side, OpenAI and Broadcom unveiled "Jalapeño," OpenAI's first custom inference chip, built in an unprecedented nine-month sprint with Celestica handling manufacturing. It’s yet another example of AI giants actively seeking more vertical control.
After months of speculation, Oracle officially confirmed it shed 21,000 jobs in fiscal 2026 – about 13% of its headcount – and spent $1.84 billion on severance. And in a reminder that aging infrastructure is still a live risk even amid the AI buildout, the UK's Queen Alexandra Hospital declared a critical incident after on-site data center chillers failed during a heatwave.
Policy and Regulation: FERC's Grid Orders, EU Gatekeeper Push
In policy news, the Federal Energy Regulatory Commission (FERC) has ordered all six major U.S. grid operators – PJM, MISO, SPP, CAISO, ISO-NE, and NYISO – to justify or overhaul how large loads connect to the grid, covering everything from interconnection studies to co-location rules. RTOs have 60 days to respond, or FERC says it’ll write the rules itself.
Meanwhile, mayors from 40 major cities signed a Global Pact for Urban Data Centers at London Climate Action Week to coordinate on power, water, and planning standards. Across the pond, EU regulators proposed designating AWS and Azure as "gatekeepers" under the Digital Markets Act – a move that would force the cloud giants to allow seamless integration with rivals and ban them from favoring their own services.
Energy and Power: Fuel Cells, Offshore Wind PPAs
In power news, Meta added 220MW of solar power in Texas via Sabanci Renewables, and FuelCell Energy signed its first binding data center deal, supplying up to 380MW of fuel cells to Fit Energy. In Europe, Amazon signed a 600MW PPA with Skyborn – Germany's largest-ever offshore wind PPA – and a 90MW onshore deal in Scotland with Egg Power. In South Australia, AI cloud provider Firmus signed a 600MW energy supply agreement with Gunvor Group. On the more experimental front, Vattenfall, Project Enki, and ABB are exploring offshore data centers wired directly into wind farms, using seawater for cooling.
Water sustainability got attention too: Microsoft claims it's now water-positive globally, five years ahead of schedule, and AWS signed a recycled-water deal with Greater Western Water for its Melbourne project.
US Development: Texas Leads, Prometheus Hyperscale Gets Go-Ahead
In development news, Microsoft unveiled a 2GW campus near Pecos, Texas, pairing it with a Chevron deal for up to 2.67GW of behind-the-meter gas power. Elsewhere, Microsoft's long-awaited Mount Pleasant, Wisconsin "Fairwater" site went live, more than two years after groundbreaking on former Foxconn land.
Prometheus Hyperscale also finally cleared planning approval in Wyoming for a 1.25GW (eventually 5GW) campus, six years after first proposing it. And in Ohio, a project in Guernsey County may proceed despite commissioners' objections – they say they lack legal standing to block it.
International Development: Data Center in a Mine, Pushback Spreads
Internationally, AWS pledged an extra $13 billion for cloud and AI infrastructure in India, bringing its total to $48 billion through 2030. Meanwhile, EdgeMode and Bloom Energy are planning a 300MW gas-powered site in Toledo, Spain. St. Petersburg approved two new sites even as dozens of Russian projects sit paused, and renewable energy firm Aurinkokarhus is eyeing a 60MW build in Närpiö, Finland. Data center firm NextDC bought 169 hectares outside Melbourne for rumored development. Elsewhere, a data center built inside an active mine in Italy’s Dolomites has officially opened – operating 100 meters underground next to apple and cheese storage rooms.
But pushback is just as visible: In the UK, hundreds of town residents in Devon are organizing against a £13.8 billion Xlinks proposal, locals in Lombardy, Italy are fighting a 240MW project near Magenta over grid and water concerns, and in Australia, a Katoomba proposal was withdrawn outright after community pressure.
Next-Gen Tech: Nvidia's Hot Tub Cooling, IBM's Nanostack Chip
Nvidia announced a new liquid cooling system that runs "hotter than a hot tub." The closed-loop system operates at a significantly higher baseline coolant temperature of 113°F, eliminating the need for traditional evaporative cooling towers and mechanical chillers in most climates. The company says this drastically slashes facility power draw and on-site water consumption for Rubin-based racks.
Speaking of Nvidia, wave-energy startup Eco Wave Power is tapping Nvidia's Omniverse to digitally model its floating power systems – simulating wave conditions and deployment scenarios – before hitting the water. IBM, meanwhile, detailed a sub-1nm "nanostack" chip architecture promising up to 50% more performance and up to 70% better energy efficiency for AI workloads. And in what might be the week's most sci-fi story, Hyperscale Data is preparing to deploy 143 humanoid robots at its Michigan facility to support data collection, model training, and facility operations.