Report: Jane Street Plans to Build Its Own Data Center to Address Computing Power Shortage

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Jane Street, one of the world’s largest market makers, is planning to build its own data center to address increasingly tight computing power supply. As competition for computing resources intensifies due to artificial intelligence, this quantitative trading giant seeks to reduce its reliance on external suppliers and take control of its own computing infrastructure.

According to Bloomberg, Jane Street has begun contacting companies in the technology, cryptocurrency, and finance industries to discuss the construction of a new data center. Negotiations are still at an early stage, and the location and capacity have not yet been finalized, but the company is seeking an additional capacity of about 100 to 200 megawatts.

The move is driven by Jane Street’s continually growing demand for computing power. Last month, Ron Minsky, Co-Head of Technology at the company, stated that Jane Street is currently operating tens of thousands of GPUs and expects to expand to hundreds of thousands soon, with a goal of tenfold growth in overall computing power.

Meanwhile, the company recorded a record $39.6 billion in trading revenue last year, and its trading volume for the first quarter of this year reached $16.1 billion—more than doubling year-on-year. Ample profits provide the financial backing for large-scale capital expenditures.

Driven by Internal Demand, Not Investment Logic

Unlike the rationale of private equity investing in data centers, Jane Street’s main purpose for building a data center this time is for its own use. According to sources, the company plans to use the facility for training internal AI models, such as those used in asset price prediction.

In a video, Ron Minsky frankly stated that the bottleneck in computing power is limiting the company’s innovation:

“Many innovations, experiments, and new ideas are constrained by the scale of computing power we currently have.”

He further added that decentralized construction is the only way out:

“You can’t get enough electricity into a single data center to support all your needs; you must build distributed data centers in various locations.”

Currently, Jane Street already has a data center in Dallas and has partnerships with cloud service providers such as CoreWeave. The new construction plan aims to build on top of existing resources and further expand the company’s computing power reserves.

Quantitative Trading Competition Intensifies, AI Computing Power Battle in Full Swing

The decision to build its own data center also highlights the quantitative trading industry’s comprehensive thirst for AI computing power. As Jane Street pursues longer holding periods and more complex strategies, it needs stronger computing power to support its continuously operating trading systems.

According to Bloomberg, other quantitative trading competitors are also actively seeking AI computing resources from multiple channels, including leasing capacities from emerging cloud providers and trading in the secondary market for used GPUs.

The explosive demand for AI data centers is also reshaping the cloud computing market landscape—once dominated by a few tech giants, the market is now seeing more small and medium-sized players, some of whom are former cryptocurrency miners renting out AI chip capacity.

Rapid Profit Growth Supports Capital Expansion

Jane Street, founded in 2000, operates both as a broker market maker and proprietary trader, capable of processing thousands of trades in seconds, while holding positions ranging from several hours to several weeks.

In recent years, the company’s position in the industry has continued to rise, with trading revenues surpassing those of Wall Street giants like Goldman Sachs and JPMorgan Chase.

Last year’s record high of $39.6 billion in revenue and $16.1 billion in trading volume for the first quarter of this year (doubling year-on-year) provide Jane Street with ample financial firepower to support massive investments in computing infrastructure.

As both trading scale and capital base expand, the company’s investment in computing power is expected to continue increasing.

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