Tony Grayson Breaks Down Northstar–Compass Quantum Deal for AI Data Centers

For this episode of the Data Center Frontier Show podcast, DCF Editor-in-Chief Matt Vincent and Senior Editor David Chernicoff sat down with Tony Grayson, President and General Manager of Northstar Technology Group's Enterprise and Defense unit, to unpack a strategic acquisition that’s shaking up the edge and modular data center space.

The conversation centered on Northstar’s acquisition of Compass Quantum, a company known for its rapidly deployable, composite-based modular infrastructure tailored for both enterprise and defense applications.

From Compass to Northstar: A Strategic Realignment

“We were developing a modular brand at Compass,” said Grayson. “Where Compass was building the gigawatt-scale campuses, I was building the smaller campuses using building blocks of modules—versus, you know, kind of a stick build.” That smaller-scale focus gained traction with enterprise clients, including several Fortune 50 companies, but new opportunities in the defense sector introduced regulatory friction.

“Compass is Canadian-owned, and that goes against some of the rules that the U.S. government has,” Grayson explained. “Chris Crosby was a huge supporter… he wanted to sell us so he wouldn’t hinder us from growing the company or servicing U.S. defense needs.”

Enter Northstar Technology Group, which brings a strategic partnership with Owens Corning—the manufacturer and IP holder behind Compass Quantum’s composite materials. With engineering, manufacturing, and construction capabilities now integrated under one roof, Grayson sees the acquisition as a natural fit. “Everything is now in-house instead of trying to go outside to other consultants,” he said.

AI-Ready Modulars in 5MW Increments

As hyperscale demands evolve, Grayson noted growing customer appetite for 5 megawatt modular units—mirroring the scale at which Nvidia and others are now building AI infrastructure. “You’ve seen Wade Vinson talk about it at Data Center World, and you see Jensen [Huang] talking about 5 megawatts being the line where you cross between the L2 and L3 network,” he said. “We can build in 5 megawatt increments and drop that stuff in parking lots—either as an operating lease or as a sale.”

That flexibility extends to Northstar’s channel partners, who are increasingly seeking a variety of procurement models. “Some want sales, not just leases. It gives us more freedom to do that kind of stuff,” said Grayson. “Sometimes it’s better to be lucky than good, and I feel like the timing of this couldn’t have been better for where the industry’s at right now.”

Veteran-Led Advisory Team Strengthens Defense Strategy

In addition to the materials and platform innovations, Northstar’s defense ambitions are underpinned by what Grayson describes as a “dream team” of senior military advisors. “We basically have every outgoing ‘six’—the people in charge of IT and comms for the Air Force, Marine Corps, Army, and Navy—as advisors,” he said. “Some will be coming on full time.”

These high-level advisors, many of whom retired as three-star generals, are instrumental in helping Northstar align its solutions with evolving defense requirements, particularly in distributed compute and real-time data processing.

“We’re making huge progress on the enterprise side, but the defense side is where we need to catch up,” Grayson added. “Defense globally needs distributed compute… they’re ahead of enterprise when it comes to inference platforms.”

He also highlighted Northstar’s engagement with the Navy, particularly around airborne systems. “That’s why we have the old air boss, Admiral Weitzel. He helps us with aircraft systems. These planes generate so much data, and we need advice on how best to internalize and analyze it.”

Material Advantage: Why FRP Composites Are a Game-Changer: Durability, Customization—and No Tariffs

A key differentiator for Northstar’s modular approach is its use of fiber-reinforced polymer (FRP) composites instead of traditional steel or concrete enclosures. As Grayson explained, “There’s no tariffs involved in any of this stuff. It’s all locally sourced and rather easy to get from Owens Corning.”

This material advantage extends far beyond sourcing. FRP composites allow Northstar to customize modules for specific use cases, including:

• Fire resistance: Two-hour fire ratings.
• Extreme weather: Withstanding 250 mph winds—Category 5 hurricanes and F5 tornadoes.
• Military resilience: Ballistic protection up to 7.62mm and .50 caliber rounds.

And despite their strength, these modules are extremely lightweight—“30% lighter than aluminum,” said Grayson. “I don’t know if you’ve ever seen the picture of me holding the 15-foot I-beam. I’m a sub guy, not Army tough. I definitely couldn’t hold that up if it were steel.”