Coatue, a major player in venture capital and hedge funds, is devising a new strategy to enhance returns from AI investments, building on its significant holdings in Anthropic, OpenAI, xAI, and data center firms like Singapore’s DayOne and CoreWeave.
The firm has introduced an initiative called Next Frontier to acquire land near major power sources to transform these areas into data centers, as reported by the Wall Street Journal. Sources indicate that Next Frontier has established a joint venture with FluidStack, a cloud infrastructure startup that has secured a $50 billion agreement to construct data centers for Anthropic. Coatue declined to comment on the matter.
Though the US currently has 3,000 data centers, Pew Research states that over 1,500 new ones are at various stages of development, primarily in rural areas. This growth is spurring land speculation and financing projects for data centers from numerous entities, including Blackstone and Kevin O’Leary from Shark Tank.