Second Mega AI Data Center Announced -- Salt Lake City -- Follows Abilene -- March 8, 2025

Locator: 48455LDC.

LDCs are tracked here.

AI: link to The WSJ.

The sixth industrial revolution:

• investing challenges;
• Broadcom joins the $1-trillion club;

AI is the sixth industrial revolution, but unlike the second and third industrial revolutions in which there were a handful of winners (identified early), there will be a huge number of players in the sixth industrial revolution -- trying to find winners will be like finding needles in a haystack.

The commodity of interest in AI is not lithium, or silicon, or copper, but rather human brain power. And dollars. Lots of dollars.

Think:

• Silicon Valley (California)
• Utah
• central and north-central Texas
• Nashville
• south India

The AI center buildout.

• $500-billion initiative to build out AI centers across the US. Link here.
• Stargate. Link here.

First it was Abilene, TX. See above. Not Salt Lake City, Utah. From The WSJ link above:

Developers of a Utah data center have secured one of the biggest construction loans in recent years, the latest sign of the market’s enormous appetite for facilities that provide the backbone for artificial intelligence.

JPMorgan Chase and Starwood Property Trust have agreed to lend $2 billion for the 100-acre data center campus in West Jordan, Utah, outside Salt Lake City.

The borrower, a venture of real-estate investor CIM Group and Novva Data Centers, said the facility will be able to provide 175 megawatts of continuous service thanks to a power deal with the local electric utility. That is roughly enough juice to power 175,000 average-size U.S. homes.

The loan marks the second data center construction loan of more than $2 billion this year, following a $2.3 billion loan in January from JPMorgan Chase for a facility in Abilene, Texas. Until recently nearly every data center construction loan was less than $1 billion, and typically amounted to less than half of that.

Now, lenders are starting to write much bigger checks because data centers are getting much larger to serve AI, which consumes more advanced chips and more power. Data centers are also increasingly getting commitments from big-name tenants before breaking ground, rather than building on a speculative basis with little preleasing.

Meta recently said it is planning a $10 billion data center in Richland Parish, La. Google last year broke ground on a pair of data centers in Dorchester County, S.C., as part of a major expansion effort in that state.

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