Data center eyed for Logan Avenue site
$3.6 million acquisition announced; city caught off guard
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A company with its main operations in China announced Monday it had entered into a $3.6 million agreement to establish an AI data center in Youngstown.
In a news release, Valor Energy Inc. said that after 30 business days it plans "to acquire all of the outstanding equity interests of the company that holds an 18 (megawatt) operational computing center ..."
Designated as the Youngstown Project, the Logan Avenue facility will be transformed "into an AI data center serving AI and high-performance computing workloads," the release says.
Valor Energy, a Nevada-based holding company, cited the 30,888-square-foot facility's existing 23-kilovolt connection to Ohio Edison power lines as a major selling point.
"Access to energized power is an important factor in AI data center development across the United States, and sites with large-scale power already in place can be difficult to secure," according to the company. "By acquiring an operating facility rather than undeveloped land, Valor Energy believes it may be able to shorten its timeline to deploy AI computing capacity, although the timeline for any such deployment remains subject to significant uncertainty, including completion of the acquisition, further construction and permitting, and availability of financing."
The announcement caught city officials by surprise.
"As this was a transaction between two private parties, we found (out) about this like everyone -- through their press release," city spokesman Andy Resnick said Tuesday in an email. "As noted in their release, they will have to go through the zoning and permitting process. Should this sale occur, the City will use every legal tool we have to ensure our residents and community interests are protected."
Guy Coviello, president and CEO of the Youngstown/Warren Regional Chamber, said Tuesday that a good opportunity exists.
"If this comes to fruition, then everybody benefits," he said.
Upon the deal's completion, Valor Energy said additional time would be required for design, construction, equipment and permitting work.
"This agreement is an important step in Valor Energy's AI data center strategy," said Dave Nichols, the company's strategic adviser.
According to a Mahoning County Auditor's Office representative, the facility at 1911 Logan Ave. is categorized as a bitcoin mining operation. Logan Avenue is a long-established industrial and manufacturing corridor.
The auditor's website lists Middlefield Industrial Complex Inc. as the property owner, which purchased the site from Commercial Shearing & Stamping Co. in October 2013. Attempts to reach Middlefield ownership for comment were unsuccessful.
Compared to other data centers, Coviello said the proposed Logan Avenue site would be a smaller operation.
"They are wanting to take it from a bitcoin mining operation that’s kind of small to something a little bit bigger than what’s there currently," he said. "This being a very heavy industrial site for decades -- and the building itself being out of sight of pretty much any residential area -- this is probably an ideal location to put it.
"It may not be much of a consideration anyways because I don’t think it’s going to be that big. But it’s still an ideal place for me."
Valor Energy had operated as Senmiao Technology Limited until Aug. 26, according to a Sept. 24 filing with the U.S. Securities and Exchange Commission. It was incorporated on June 8, 2017. Valor Energy, which trades on Nasdaq under VAI, was listed at $2.54 per share early Tuesday afternoon.
"As a holding company with no material operations of its own, Valor conducts a substantial majority of its operations through its subsidiary established in the (People's Republic of China)," the company said in its filing.
As Senmiao Technology Limited, the company has focused on the ride-hailing industry in China. The company reported ending those endeavors in December 2025.
In its September filing, Valor Energy said its management had started to explore data center projects.
"We expect to select one of these opportunities for further development if it determines that the project is commercially viable and consistent with its long-term strategic objectives," the filing says. "As of the date of this prospectus, we have not entered into any definitive agreement with respect to any AI data center or related infrastructure project, and there can be no assurance that any such opportunity will be consummated or successfully implemented."