Data Centers Rise in Fracking Country, Palmer Luckey’s New Bank, and More: October 19 Technology Highlights
By Bradley Olson | The Wall Street Journal | October 19, 2025
Massive Data Centers Ignite Permian Basin’s Tech Boom
The Permian Basin in Texas—famed as the heart of the U.S. oil and gas drilling industry—is now emerging as a surprising new frontier for the rapidly expanding artificial intelligence (AI) sector. Cloud-computing provider CoreWeave and AI startup Poolside have jointly announced plans to develop one of the largest data center complexes in the country on the Longfellow Ranch, a sprawling property in the region roughly comparable in size to Los Angeles.
This data center project, dubbed Project Horizon, stands out due to its strategic location adjacent to abundant natural gas production and processing facilities. This proximity is expected to enable the complex to generate its own electricity rapidly and efficiently, circumventing many challenges associated with the conventional U.S. power grid—a common bottleneck in scaling AI infrastructure.
By the time it is operational, Project Horizon will boast around two gigawatts of computing power, a capacity on par with the electricity produced by the Hoover Dam. The ranch’s long-time owners, the Mitchell family, are already considering expanding the facility up to three times its initial size, eyeing further opportunities to capitalize on the underutilized oil and gas infrastructure scattered across West Texas.
As demand for AI technology surges, driven by companies like OpenAI pledging multi-trillion-dollar investments in computing capacity, locating data centers near reliable and cost-effective energy supplies is becoming critical. Project Horizon marks a bold fusion of Texas’s energy legacy with next-generation technology infrastructure.
Tech Industry Updates: Nvidia-Broadcom Collaboration and Palmer Luckey’s Banking Venture
In other technology news, OpenAI has forged a significant partnership with semiconductor manufacturer Broadcom to co-develop and deploy custom AI chips and computing systems. Their collaboration aims to deliver 10 gigawatts of tailored AI hardware over the next four years—addressing the escalating needs of AI startups with innovative chip designs. This pairing has been likened to combining "Nvidia’s chocolate with Broadcom’s peanut butter," highlighting the complementary nature of their capabilities.
Meanwhile, Palmer Luckey, the defense technology entrepreneur best known for founding Oculus VR, is entering the financial sector with a new venture. Following the collapse of Silicon Valley Bank in 2023—which nearly imperiled Luckey’s defense startup Anduril—he is establishing a new bank designed to serve startups and technology companies in Silicon Valley and beyond. This move intends to fill the gap left by more conservative banking institutions retreating from risky startup financing.
The Rising Threat of Chinese Cybercrime and AI in Education
On the cybersecurity front, U.S. officials report a billion-dollar scam operation orchestrated by Chinese criminals leveraging fraudulent text messages. These messages impersonate government agencies or service providers, tricking recipients into paying fictitious fees or fines. The scheme is highly sophisticated and continues to flood American cellphone users, posing ongoing challenges for law enforcement.
Meanwhile, in academia, AI’s role in education is an evolving topic. Columbia University Professor Matthew Connelly recently discussed the balance between the benefits and risks of incorporating AI technologies in higher education, highlighting both the potential to enhance learning and the ethical considerations it raises.
Additional Headlines and Features
- A New Jersey teenager has filed a lawsuit against a software developer after a classmate allegedly used “clothes removal” AI software to create fake nude images.
- Wikipedia reports a decline in human visitors attributed to AI-generated content, stirring concerns about the platform’s future.
- Satellite security issues are coming under scrutiny, with reports citing leaks of sensitive calls, texts, and military data.
- The youth sports app market is booming, providing fresh data-driven insights for minor league and youth sports organizations.
Market Snapshot (As of Oct. 19, 2025)
- Dow Jones Industrial Average (DJIA): 46,706.58 (+1.12%)
- S&P 500: 6,735.13 (+1.07%)
- Nasdaq Composite: 22,990.54 (+1.37%)
- Russell 2000: 2,499.91 (+1.95%)
- U.S. 10-Year Treasury yield: 3.984%
- VIX (Volatility Index): 18.23 (-12.27%)
- Gold: $4,375.50 (+3.85%)
- Bitcoin: $111,080.51 (+0.20%)
- Crude Oil: $57.52 (-0.03%)
About the Author
Bradley Olson is the Deputy Tech Bureau Chief at The Wall Street Journal, based in San Francisco. He covers major technology trends, including AI, computing infrastructure, and cybersecurity.
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This article is based on reporting from The Wall Street Journal as of October 19, 2025.
