All articles tagged with #data center
CNBC’s Jim Cramer argues rising political opposition to data-center projects could slow the buildout and pressure valuations of traditional vendors, but tighter rules may primarily benefit hyperscalers—Amazon, Alphabet, Microsoft and Meta—who can absorb compliance costs and outcompete smaller developers, potentially reducing competition for land, labor and electricity.
Nvidia says its Groq 3 LPX rack is in full production following its $20 billion acquisition of Groq, to be deployed with Vera CPUs and Rubin GPUs at neocloud Nebius and go online later this year, underscoring the push for ultra-low-latency AI inference; the LPX rack uses 256 Groq 3 chips with 500 MB SRAM per chip and can deliver about 3,400 tokens per second, with Samsung manufacturing Groq chips and TSMC handling Nvidia GPUs as Nvidia ramps Vera Rubin shipments toward multi-year sales.
Reuters reports Nvidia has informed its largest customers that servers containing its AI chips will see price increases above 15%, driven by soaring memory costs and varying by chip generation and memory configuration. The hikes will affect systems shipped early next year and impact data-center builders for Microsoft, Google, and Oracle. Nvidia is set to report second-quarter results on August 26, underscoring its pivotal role in AI infrastructure.
Alphabet’s $12.18 billion warrant to buy Marvell shares turns Google from customer into an aligned equity holder and validates Marvell’s AI-focused XPU strategy. Bulls see meaningful upside with a target around $288–$354 over the next 12–24 months as data-center AI demand and the TPU ecosystem expansion support growth, helped by near-term revenue guidance (~$11.5B in fiscal 2027 and ~$16.5B in 2028). However, MRVL trades at a rich forward P/E versus peers Broadcom and NVIDIA, and risks include customer concentration and hyperscaler roadmaps that could influence the AI hardware roadmap.
The Vineland Planning Board approved Phase 2 of the data center project, adding 600,000 square feet to reach an eventual 2.6 million, after a lengthy public comment period. Residents have raised worries about water and power usage and a persistent humming noise. Data One says the site complies with noise limits and has addressed complaints, and officials will continue to monitor the expansion as Phase 1 remains under construction.
OpenAI is moving forward with a massive Ohio data center featuring 8 IT-gigawatts of compute backed by Nvidia for up to $105 billion in lease/power guarantees to SB Energy; the plan includes at least 10 GW of new energy generation and a 20-year lease, with capacity expected in 2028, as part of a broader push to host large gas-powered AI campuses on Cold War–era sites.
Nvidia will provide more than $105 billion in financing to back the PORTS‑Pike Technology Campus in Ohio, a new OpenAI data center with initial 4.25 gigawatts of compute (potentially expanding to 8 GW) powered entirely by Nvidia GPUs and leased to OpenAI for 20 years; Nvidia also invests $1.5 billion in SB Energy, and when combined with prior deals could total up to $600 billion in AI infrastructure activity, while Nvidia says the arrangement is about long-term capacity and denies circular investing.
Nvidia will back OpenAI’s new Ohio data center with credit and compute, financing an initial 4.25 GW of capacity (with an option for 3.75 GW more) to come online in phases by 2028. SB Energy will build and operate the 20-year-lease facility at the PORTS-Pike Campus in Pike City, Ohio. Nvidia will invest $1.5 billion in SB Energy, while SB Energy and SoftBank will support 10 GW of power and invest at least $4.2 billion in regional grid upgrades. OpenAI estimates the project will create about 35,000 construction jobs through 2032 and 2,500 long-term roles, expanding access to high-end chips and compute for AI workloads.
According to The Information, Nvidia is negotiating up to $3 billion in SB Energy—SoftBank's energy unit—to back OpenAI's planned Ohio data center campus, part of roughly $100 billion in credit support; the deal could be staged with half the funds at signing and the rest around SB Energy's anticipated IPO, though Reuters could not immediately verify the report.
Beacon Partners withdrew its proposal to build a 100,000-square-foot data center on a 13-acre parcel on Jones Sausage Road in southeast Raleigh after more than 30 residents spoke against it; the project was in the very early stages, involving annexation and zoning approvals, and Raleigh has not enacted a data-center moratorium.
UBS analysts expect Nvidia to report a robust fiscal second quarter with an upbeat sales outlook, underpinned by solid AI-driven demand from data centers and continued leadership in AI accelerators.
Reuters reports Nvidia is reducing its financial backstop for OpenAI’s proposed Ohio data center to less than $120 billion for the first phase (down from the previously discussed $250 billion), as Nvidia and OpenAI move toward a deal. The full 10 GW project and binding lease are still under discussion, with investors’ concerns over large AI-infrastructure commitments cited as a factor.
NVIDIA unveiled a roughly $500 billion compute-financing framework to back AI infrastructure, a move credit markets treated as reassurance as demand for AI accelerates. With NVDA around $225 and a $5.46 trillion market cap, a consensus price target sits at $271.49 (bull case near $315, bear case about $234). The company posted Q1 FY2027 revenue of about $81.6B (up 85% YoY), Data Center revenue of $75.2B, and free cash flow of ~$48.6B, supporting an $80B buyback. The piece positions NVDA against AMD and Broadcom, highlighting agentic AI demand while noting risks from China and margin pressures as Blackwell and Rubin ramp.
Micron Technology shares rose over 5% after executives at a technology conference warned that memory supply may stay tight through 2027 as AI infrastructure spending grows and data-center demand outpaces production. The move was supported by signals of ongoing data-center investment (CoreWeave and SMCI) and by upbeat analyst commentary, with UBS maintaining a Buy rating and lifting its long‑term earnings view. Wall Street is looking for about $31.27 in quarterly earnings per share and $50.81 billion in revenue when MU reports next on Sept. 22.
Nvidia is set to report earnings after Aug. 26 and remains focused on a $1 trillion GPU opportunity, but investors should also watch a fast-growing CPU stream led by the Vera CPU, which Huang says could unlock a $200 billion CPU TAM with about $20 billion in CPU revenue this year. Meanwhile, data-center revenue projections remain enormous, with consensus estimates around $368 billion in fiscal 2027 and $531 billion in 2028, highlighting the CPU and AI-integration opportunity as a key driver beyond GPUs.