Data Centers in Nvidia's Hometown Stand Empty Awaiting Power [View all]

Source: Yahoo! Finance/Bloomberg

Mon, November 10, 2025 at 5:00 AM EST


(Bloomberg) -- Two of the world’s biggest data center developers have projects in Nvidia Corp.’s hometown that may sit empty for years because the local utility isn’t ready to supply electricity.

In Santa Clara, California, where the world’s biggest supplier of artificial-intelligence chips is based, Digital Realty Trust Inc. applied in 2019 to build a data center. Roughly six years later, the development remains an empty shell awaiting full energization.

Stack Infrastructure, which was acquired earlier this year by Blue Owl Capital Inc., has a nearby 48-megawatt project that’s also vacant, while the city-owned utility, Silicon Valley Power, struggles to upgrade its capacity. The fate of the two facilities highlights a major challenge for the US tech sector and indeed the wider economy.

While demand for data centers has never been greater, driven by the boom in cloud computing and AI, access to electricity is emerging as the biggest constraint. That's largely because of aging power infrastructure, a slow build-out of new transmission lines and a variety of regulatory and permitting hurdles.

Read more: https://finance.yahoo.com/news/data-centers-nvidia-hometown-stand-100009877.html