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Insurers and reinsurers are exploring catastrophe bonds to help cover the massive, geographically concentrated value of hyperscale data centers, many of which sit in hurricane- and flood-prone regions. Industry experts told CNBC that while no dedicated data center cat bond has yet been issued, activity is building one step upstream through reinsurance vehicles like quota shares and sidecars as firms work out pricing and capacity.
Oracle reported fiscal first-quarter revenue of $19.35 billion, topping analyst expectations, with net income climbing 60% to $4.7 billion. The gains were driven by a 62% jump in cloud revenue, including a 121% surge in cloud infrastructure sales, prompting shares to rise more than 6% in premarket trading.
Commentators aligned with Steve Bannon's political circle, including Joe Allen, have started describing artificial intelligence systems built in data centers as 'algorithmic immigrants,' framing AI development as akin to immigration that threatens American workers and culture. The phrase is being used to fold anti-AI sentiment into existing far-right anti-immigration narratives.
Following an August incident where a burst water line at an Athlon BT-operated Bitcoin-mining facility in El Reno, Oklahoma spilled nearly four million gallons of water, a subsequent fire marshal inspection uncovered a string of serious safety violations. Investigators found flammable liquids stored near combustible materials, poorly maintained fire extinguishers, damaged electrical wiring, an empty emergency lockbox, and code-violating vegetation, prompting the city to issue the facility a failing safety grade.
Analog Devices has agreed to acquire Alif Semiconductor in an all-cash deal valued at $1.35 billion. The acquisition is aimed at broadening ADI's reach into fast-growing markets, including data-center infrastructure and defense applications.
Verdant, an economic think tank pushing for stricter data center regulation, says techUK's widely cited job creation figures are inflated. It estimates existing UK data centers support about 4,400 direct jobs versus techUK's 24,300, and projects only 10,400 permanent jobs by 2035 for planned sites versus techUK's forecast of 40,200.
Storage prices are climbing fast as AI data centers consume the supply of NAND flash and hard drive components once reserved for consumer products. A 2TB SSD that cost $120-$200 last year can now run close to $400, while even small 256GB drives have jumped several times over their previous $25 price point. Portable drives used for everyday backups have also nearly doubled in cost within months.
Thailand's government has asked operators of 49 data centers under construction to voluntarily halt work while officials draft comprehensive legislation covering the industry, according to NESDC secretary-general Danucha Pichayanan. The country currently lacks specific laws for data centers, resulting in loopholes such as facilities being zoned as warehouses next to hospitals, and officials plan to spend about a month drafting rules after gathering data from agencies through September 11.
A June fire at the unfinished Lake Mariner data center in Somerset, New York, left local firefighters battling smoke from unidentified chemicals with no working alarms, no suppression system, and three dry hydrants. TeraWulf, which owns and operates the site under a complex arrangement involving Fluidstack, Google, and Anthropic, said the required safety documents were destroyed in the blaze. Months later, the fire chief said promised fixes like functioning hydrants still had not been completed.
A viral video shows a large data center in Denver's Elyria-Swansea neighborhood running sprinklers heavily on its grounds while residents face stage-one drought restrictions limiting lawn watering to two days a week. The facility is believed to be an 18-megawatt, 170,000-square-foot site owned by cloud provider CoreSite, though the tenants using the space haven't been confirmed.
A Bitcoin mining data center in El Reno, Oklahoma, owned by Athlon Blockchain LLC, has been condemned after leaking roughly 3 million gallons of water, prompting closures of schools, businesses, and city and county offices. The facility had reportedly continued construction and operations despite a 2023 city Stop Work Order tied to fire and safety code violations and expired permits.
As AI data centers rise across the country, the trucking industry is quietly benefiting from hauling the materials needed to build them—HVAC systems, wiring, tubing and semiconductors. Industry executives say this equipment-heavy freight, especially flatbed and heavy-haul segments, has seen multiyear-high spot rates and tighter capacity even as broader freight demand remains uneven amid tariffs and record diesel prices.