Chris Pickles is the SVP and Managing Director of CrimsonXT, and has a wealth of experience recruiting across the tech industry. Putting his industry expertise to use, he recently produced the “Data Center Download” – a bi-weekly news roundup, that explores the latest funding, collaborations, product updates and funding news from cutting-edge data center companies across the US, Europe and APAC.

 

 

Welcome back to Data Center Download. Following the Christmas break, we’re straight back to business, with plenty of developments across the market. In this bi-weekly newsletter, Chris explores the latest funding, collaborations, product updates and funding news from cutting-edge data centre companies across the US, Europe and APAC.

To kick off, let’s take a brief look at the market during 2024. Key trends in the market were:

  • Expansion of AI-driven infrastructure
  • Adoption of advanced cooling technologies
  • Sustainability
  • Growth in modular and prefabricated data centers
  • Increased investment in edge computing
USA

There was a 4% decrease in talent across the US, with the prominent skills being:

  • SQL
  • Product management
  • Python
  • Analytical

In 2024, the data center market in the US witnessed significant funding and acquisition activities. One of the most notable was Databricks $10 billion financing round in December 2024, valuing the company at $62 billion.

Europe

There was a 0.5% decrease in talent across the US, with the prominent skills being:

  • SQL
  • Java
  • Analytical

In 2024, the European data center market experienced significant investment and acquisition activities. One of the most notable was Amazon announcement in June to invest €15.7 billion over the next decade to expand its data center capacity in Aragon, northeastern Spain.

APAC

There was a 2% decrease in talent across the US, with the prominent skills being:

  • SQL
  • Java
  • Python

In 2024, the APAC data center market experienced significant investment and acquisition activities. The most notable transaction was Blackstone‘s acquisition of AirTrunk, a leading data center operator in the region, for A$24 billion (approximately US$16 billion). This deal marked Blackstone’s largest-ever transaction in the APAC region and positioned the firm as the world’s largest data center provider.

 

data center

 

Spotlight on:

Each bi-weekly newsletter features a special ‘Spotlight’ segment, where I highlight a company making notable strides—whether it’s a start-up securing significant investment or an industry leader driving sustainable change. This month, the spotlight shines on CoreWeave.

CoreWeave is a cloud computing startup specializing in providing GPU-accelerated infrastructure tailored for AI and machine learning workloads. As of 2024, CoreWeave operates multiple data centers across the US and UK, utilizing a Kubernetes-native architecture to support large-scale, GPU-intensive tasks. The company has secured significant investments, including a $2.3 billion debt financing facility in 2023 and a $1.1 billion funding round in 2024, valuing it at $19 billion. CoreWeave plans to go public with an initial public offering in 2025.

 

January funding news:

Tamboran Resources Corporation pitches $5 Billion natural gas-powered data center. “We think the Northern Territory is well positioned for a substantial data center investment. There is an abundant energy resource, abundant land, existing infrastructure, and a customer that is the Department of Defence,” CEO Joel Riddle said.

Spain’s biggest oil firm Repsol is entering the data center business with an investment of $4.2 billion (4 billion euros) as part of its diversification drive, Spanish daily Expansion reports, quoting sources close to the plans.

The City of Mortágua in Portugal is planning to upgrade its data center. As reported by local publication Jornal Do Centro, the Mortágua council is planning to spend around €176,000 ($185,000) on modernizing the data center’s hardware and software.

Fusion startup Helion has raised $425 million in a Series F round.

Reliance Industries Limited , the Mukesh Ambani-owned conglomerate, wants to build the largest data centre in the world, with plans to construct a multi-gigawatt-scale site in Jamnagar.

The Trump administration has unveiled a plan to develop a $100 billion AI data center with SoftBank Group Corp., OpenAI and Oracle, with plans to expand to “at least” $500 billion in investment.

 

Exciting market developments to keep an eye on:

Huge investments in AI infrastructure: Meta Platforms plans to invest between $60 billion and $65 billion in 2025 to expand its AI infrastructure. This includes constructing a data center with over 2-gigawatt capacity and acquiring more than 1.3 million graphics processors by year-end.

Microsoft is undertaking an $80 billion buildout in 2025, focusing on AI-enabled data centers to support its growing AI initiatives.

The Stargate project: A new initiative called Stargate, announced by President Trump, involves a $500 billion investment in AI infrastructure. This project is a collaboration with tech giants like OpenAI, Oracle, and SoftBank, aiming to build data centers and the necessary electricity generation in Texas.

Cost-effective AI models: The introduction of DeepSeek, a Chinese AI startup, has disrupted the market by developing AI models that are more cost-effective and require less computing power. DeepSeek’s approach utilizes older Nvidia chips more efficiently, challenging the massive investments in energy and AI infrastructure by Western tech companies.

Renewable energy integration: By 2025, data center managers expect nearly 25% of their power to come from solar energy, a significant increase from about 1% today.

Expansion in emerging markets: India has emerged as a leading data center hub in the Asia-Pacific region, surpassing established players like Singapore and Australia.

 

 

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