By Matthew Sotlar / The Jambar
The Nevada-based artificial intelligence data center and China-based technology company, Valor Energy, announced Oct. 19 a $3.6 million purchase of a computing facility located at 1911 Logan Ave. in Youngstown.
The company plans to convert the former bitcoin mine and over 30,000 square foot computing facility into an AI data center.
In a press release, Dave Nichols, strategic adviser to Valor Energy, stated the company’s intent to convert the facility’s current 18-megawatt electrical output to AI data storage as part of “The Youngstown Project.”
“This agreement is an important step in Valor Energy’s AI data center strategy,” Nichols stated. “The Youngstown site includes 18 megavolt-amperes of power capacity that we believe is already approved and energized, which can be difficult to secure in this industry. We believe this reduces, though does not eliminate, the time needed to pursue AI computing capacity at the site, subject to completion of the acquisition and further development work.”
The facility had been under the ownership of Middlefield Industrial Complex since 2013, which used the facility for bitcoin mining and digital computing.
In the release, Valor Energy stated there are numerous measures left before the AI data center will be operational.
“The Company intends to use the net proceeds primarily to support the proposed Youngstown acquisition and planned conversion,” Valor Energy stated. “The timing and scope of development remain subject to completion of the acquisition, further design, construction, equipment and permitting work, and the availability of sufficient funding.”
AI data centers have received heavy scrutiny by many due to the high energy costs needed to keep the facilities operational. In Ohio, there are over 20 ballot initiatives related to AI data centers across the state — more than any other state — who can vote whether or not to ban data centers in the city.
Despite these concerns, Guy Coviello, CEO of Youngstown Warren Regional Chamber, said he believes there would likely be little to no impact on residents in the area.
“I doubt that anybody on the outside would notice any difference whether it’s a bitcoin mining operation inside or an AI processing center inside,” Coviello said. “They both operate pretty much exactly the same from an external view. I don’t think anybody would ever notice any difference.”
Conversely, Coviello said he believes the purchase of the facility could positively impact the area, citing economic and social decline and the opportunity to revitalize the community.
“Given where that neighborhood is, there’s a good opportunity to take a neighborhood that has experienced decades of disinvestment, has suffered through and continues to suffer through industrial blight — that has seen crime go up,” Coviello said. “If you’re going to reverse course, you have to start somewhere, and so having someone willing to invest instead of disinvest in this neighborhood … that could be the start of something transformational.”
Coviello said he remains hopeful to see property values increase and property taxes decrease with the new data center, while noting the center’s acquisition is only the first step to revitalizing the area.
“We could see property values go up, we could see crime go down. We could see a few property taxes go down because it’s getting spread out much better,” Coviello said. “The only thing I would caution is this is only a small first step to what maybe over the course of many, many years could reverse course for a neighborhood that has really suffered badly.”
