There is a report that QTS Data Centers (fully owned by Blackstone) is abandoning plans to build a data center in Virginia.The market might be sensitive to these report in light of yesterday's market-moving story about Meta looking to sell excess compute. There are fears of overbuilding and also that the huge spending won't make an economic return.Scotia yesterday wrote:The bear framing is that a largehyperscaler willing to sell excess compute, while still investing behind frontier models, signalsinternal demand tracking below capacity, inviting an asterisk on future capex disclosuresacross the group. The bull framing is CFO-driven arbitrage: with external GPU prices at currentlevels, first-party allocation becomes harder to justify at the margin, and monetizing surpluscapacity is economically rational. We lean toward the latter but recognize the tensionI will try to track down the details of this report and the reason for the decision to shelve the project. This article was written by Adam Button at investinglive.com.