Texas Data Centre Aims to Power AI with 1.4GW, Sets New Benchmark for $25bn Investment

Vantage Data Centers and DigitalBridge Group are investing $25bn in a 1.4GW data centre mega-campus in Texas to address AI infrastructure challenges. The Frontier campus will occupy 1,200 acres, deliver 3.7 million sq ft of data centre space, and create 5,000 jobs. The facility will use liquid cooling systems and a closed-loop chiller system to minimize water usage and pursue LEED certification.

Vantage Data Centers, a leading global provider of hyperscale data centers, and DigitalBridge Group, Inc. (NYSE: DBRG) have announced a significant investment of $25 billion in a 1.4GW data center mega-campus in Shackelford County, Texas. The Frontier campus, slated to be the largest project to date for Vantage Data Centers, is designed to address the growing challenges in AI infrastructure.

The Frontier campus will span 1,200 acres and deliver 3.7 million square feet of data center space, creating approximately 5,000 jobs in the region. The facility will utilize advanced liquid cooling systems and a closed-loop chiller system to minimize water usage and pursue LEED certification, demonstrating a commitment to sustainability [1].

DigitalBridge Group, a leading global alternative asset manager, underscores its commitment to scaling digital infrastructure to meet the accelerating demand for AI. Jon Mauck, Senior Managing Director and Head of Data Centers at DigitalBridge, stated, "Frontier represents an important milestone for Vantage Data Centers and for the broader digital infrastructure ecosystem. As investors, we are proud to support Vantage in expanding its platform with a project of this scale, which not only enables the growth of AI but also creates meaningful local impact through jobs and community investment" [1].

The Frontier campus will include 10 data centers designed to support ultra-high-density GPU workloads, reflecting the growing need for advanced computational capabilities in AI applications. The project aligns with DigitalBridge's broader strategy of building and scaling global platforms across hyperscale, AI, private cloud, edge data centers, fiber, towers, and digital power [1].

This investment underscores the strategic importance of Texas as a global AI hub, with the Frontier campus serving as a cornerstone for supporting global hyperscale customers. The development is expected to bring significant economic benefits to the region, including job creation and community investment [1].

DigitalBridge's continued investment in Vantage Data Centers highlights the firm's dedication to addressing the infrastructure challenges posed by the AI revolution. The company's portfolio includes investments in cell towers, data centers, fiber, small cells, and edge infrastructure, managing $106 billion of infrastructure assets on behalf of its limited partners and shareholders [1].

The Frontier campus is a critical development in the broader context of AI-driven energy infrastructure. As AI data centers require massive power and grid resilience, energy companies are increasingly investing in grid upgrades and renewable energy. For instance, Entergy Louisiana is investing $3 billion in gas-fired power plants, solar capacity, and transmission upgrades to support Meta's $10 billion data center in rural Louisiana [2].

The AI energy infrastructure market is poised for exponential growth, with global data center electricity demand projected to double by 2030. Investors should prioritize energy stocks that demonstrate AI-specific expertise, balance renewables and transitional fuels, and lead in grid modernization [2].

In conclusion, the $25 billion investment in the Frontier campus by Vantage Data Centers and DigitalBridge Group is a significant step in addressing the AI infrastructure challenges. This project not only supports the growth of AI but also creates meaningful economic benefits for the region. As AI demand surges, energy companies that can deliver reliable, scalable, and sustainable power will dominate the market. Investors should focus on companies that align with both the technical demands of AI and the long-term transition to clean energy.

References:
[1] https://www.morningstar.com/news/business-wire/20250818389101/digitalbridge-backed-portfolio-company-vantage-data-centers-launches-25-billion-texas-frontier-mega-campus
[2] https://www.ainvest.com/news/meta-10b-data-center-louisiana-energy-infrastructure-play-assessing-strategic-ai-driven-growth-2508/