A US$2 billion loan has been secured for the construction of a new Artificial Intelligence (AI) Data Center in Utah. Provided by JPMorgan Chase and Starwood Property Trust, the project is to be located in 100-acres of land In West Jordan, just outside Salt Lake City. Additionally, CIM Group and Novva Data Centers are the developers behind this project. Historically, data center loans are granted for less than US$1 billion however, this construction loan has surpassed this figure making it one of the most expensive data centres. Earlier this year, a similar loan was granted by JPMorgan Chase worth US$2.3 billion for a facility in Abilene, Texas.
Details on the Utah AI Data Center financing
The Utah AI Data Center project began construction in 2020 without any leasing agreements. The first phase was completed in 2023 however, it is expected that the whole facility will be completed and operational by 2026. The method of constructing the facility without pre-leased agreements is not common as they are usually secured before construction starts. This is in order for developers to have the money in hand and reduce risk connected to massive data center projects. Some of these problems may include the increased expenses brought about by higher power consumption by artificial intelligence data centers and the advanced semiconductors they need to operate.
Project Overview
Location: West Jordan, Utah
Project scope: 1.5 million square feet
Ground breaking: 2020
Project cost: US$2 billion
Completion date: 2026
Developers: CIM Group and Novva Data Centers
Financiers: JPMorgan Chase and Starwood Property Trust
The data center originally had a budget of US$1 billion in 2022 and aimed to complete the project in four phases. The original plans call for a facility spreading 1.5 million square feet. Utah was selected because it has a lower risk of natural catastrophes, despite the persistent issues with water supply. The plant, however, will use a water recirculating system in order to keep the computers at optimum temperatures.
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