Coatue, a leading name in venture capital and hedge funds, is rolling out a new strategy to enhance returns on AI beyond its substantial investments in Anthropic, OpenAI, xAI, and data center firms such as Singapore’s DayOne and CoreWeave.

It has introduced a venture called Next Frontier aimed at acquiring land close to major power sources with the intention of converting those sites into data centers, reports the Wall Street Journal. According to sources, Next Frontier has already established a joint venture with Fluidstack, a cloud infrastructure startup that secured a $50 billion agreement to create data centers for Anthropic. (Coatue did not provide a comment when approached.)

Despite the U.S. already hosting 3,000 data centers, over 1,500 new ones are under construction in various phases, as per Pew Research, with the majority located in rural regions. This rush is stimulating land speculation and financing for data center projects from a variety of stakeholders, including Blackstone and Kevin O’Leary from “Shark Tank.”

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