Inside the race to build data centers

AI may be improving. But it is expanding data centers, full of powerful chips, that actually train and run leading AI models like Gemini, ChatGPT and Claude. These mega-scale data center projects—which fuel the AI boom and, by extension, the US race against China—are changing landscapes, straining energy grids, and reshaping economies.

In a recent segment, my colleague Sharon Goldman flew to Arizona to the Hassayampa Ranch, a 2,000-acre site 50 miles west of Phoenix. There, developer Anita Verma-Lallian is trying to bring to life a $51 million deal to build a massive data center, one backed by (among others) VC and Trump mega-donor Chamath Palihapitiya. The goal? Bring a hyperscaler like Google, Microsoft or OpenAI.

“We have probably six to eight large hyperscalers that are interested in looking at it,” Verma-Lallian told Goldman.

As Sharon writes, these data centers aren’t just about technology, or economics – they’re also about politics, zoning rules and the environment:

At a time when investment in AI infrastructure accounts for a growing share of US economic growth, Republicans and Democrats are competing to prove that they can quickly build projects—a priority that aligns with those investing in technologies and infrastructure that are growing and consolidating their political influence as demand for computing power soars. For example, Palihapitiya’s All-In podcast cohost, venture capitalist David Sacks, is now Trump’s “AI and crypto czar,” helping to oversee the federal strategy on AI competitiveness and infrastructure.

In 2025, AI data centers have emerged as a political flash point, fueling heated debates and grassroots campaigns about power, water, land, and jobs. Critics, many from the left but also populist Republicans like Sen. Josh Hawley of Missouri and Florida Gov. Ron DeSantis, warned that they are driving up electricity costs and straining scarce water supplies. Meanwhile supporters (again, from both sides of the aisle) argue that they can provide economic growth and long-sought tax revenue to struggling communities.

Tensions come to the fore, as Big Tech, Silicon Valley money, politics, and local communities collide. Read the full story here.

see you tomorrow,

Allie Garfinkle
X: @agarfinks
Email: [email protected]
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VENTURE CAPITAL

– Cellarsa South San Francisco-based developer of cell therapy manufacturing technology, has secured $257 million in Series D funding from BlackRock, T. Rowe Price, Baillie Gifford, Gates Frontierand so on.

– Repeat ita New York City-based AI platform designed for finance, has raised $75 million in Series C funding. Sequoia capital leading the round.

– tESTIMONYa Pittsburgh, Pa. and Tel Aviv, Israel-based developer of an intelligent document format designed to replace PDFs, has secured $73 million in seed funding. valley capital Colleagues leading the round.

– Alleyan Austin, Texas-based AI-powered insurance brokerage, has raised $60 million in funding. Lightspeed led the round and was joined by The best Trades, crystal Venture Colleagues, jewel, MVP Tradesand so on.

– Zocksa San Francisco-based developer of an AI platform designed for financial advisors, has raised $45 million in Series B funding. Lightspeed Venture Colleagues and THE Investors led the round and was accompanied by Shine Finance and existing investors.

– Outtakea New York-based AI agent platform designed for detecting digital threats and responding to them, has raised $40 million in Series B funding. ICONIQ led the round and was joined by CRV, S32and so on.

– Phiaa New York City-based platform designed to be an AI-shopping assistant, has raised $35 million in Series A funding. remarkable capital led the round and was joined by Khosla Trades and existing investors Kleiner Perkins.

– Adaptable6a New York City and Tel Aviv, Israel-based cloud expense management platform, has raised $28 million in Series A funding. US Venture Colleagues led the round and was joined by NEW Era capital Colleagues, Forgepoint capital, Pitango VCand Vertex Trades.

– Cut Global Equitya New York City-based AI-powered equity compliance and management platform, has raised $25 million in Series A funding. Sight Colleagues led the round and was joined by Fenwick and Cooley and existing investors.

– XFuela Dublin, Ireland-based low-carbon drop-in fuel technology company, has raised $20 million in Series A funding from Audacity, reaching PLANET capital, LIGHT Ray Tradesand so on.

– Concoursea New York-based AI agent platform designed for financial analysis, has raised $12 million in Series A funding. standardized capital led the round and was joined by Andreessen Horowitz, CRV, Y kombinátorangel investors.

– Datatrucka Lombard, Ill.-based AI-powered operating system designed for long-haul trucking carriers, has raised $12 million in Series A funding. Ave Growth Colleagues led the round and was joined by existing investors.

– Sentra.appa San Francisco-based general business intelligence platform, has secured $5 million in seed funding. a16z speedrun and HOUSEMATES FUNDS led the round and was accompanied by ILLUSTRATIONS, COMMANDING LEAD Tradesand so on.

– Carbonidea Joensuu, Finland-based green concrete company, has raised €3.7 million ($4.4 million) in funding. Vantaa strength, Red stoneand I’m sorry stock leading the round.

– Emobian EV charging network based in San Francisco, has raised $3.4 million in seed funding. Florida Funders led the round and was joined by existing investors Aves Trades, together FUNDS, Gaingels, Generatorand so on.

PRIVATE EQUITY

– Premier Radiologya portfolio company of Grovecourt capital ColleaguesObtained National Radiology Solutionsa radiology company based in Winter Garden, Fla. Financial terms were not disclosed.

– Flata portfolio company of Gem fountain capitalObtained it’s ok COOLis a creative agency based in London, UK. Financial terms were not disclosed.

– Roverbacked by BlackstoneObtained Meowa cat-sitting market based in Dover, Del. Financial terms were not disclosed.

EXITS

– CVC agreed to take Equine Networkan Albuquerque, NM-based equestrian sports league, from Growth Catalyst Colleagues. Financial terms were not disclosed.

– Executive Equity Colleagues Obtained Notonthehighstreetis an online gift retailer based in London, UK, from Great Hill Equity Colleagues and Burda Principal Investments.

IPOS

– Eikon Therapiesa drug discovery company based in Millbrae, Calif., plans to raise up to $316.8 million in an offering of 17.6 million shares priced between $16 and $18 on the Nasdaq. Lux, Foresight capital, the column group, RENEWAL Efforts, Mahler Internationaland Catalyst4 back to the company.