PowerHouse closes on site of 800 MW data center campus in Virginia

PowerHouse Data Centers, a developer and owner of next-generation data centers backed by a joint venture between American Real Estate Partners (AREP) and Harrison Street, has completed purchase of 145 acres in Spotsylvania, Virginia to serve as the site of the PowerHouse 95 data center campus. This purchase marks one of two recent transactions for the JV, following the announced closing on the PowerHouse Reno site.  In addition to closing on PH 95 and PH Reno, PowerHouse has four developments underway in northern Virginia totaling over 700 MW. 

Powerhouse 95 will serve the data-intensive needs of hyperscale users in northern Virginia, which is currently the largest data center market globally. With power constraints impacting the region, Powerhouse 95 – located along the I-95 corridor and with two existing substations offering imminent access to power –  is expected to offer a competitive advantage by accelerating Powerhouse’s ability to address customers’ increasing data demands in the region.”The site will appeal to hyperscale users that seek well located developments with access to power and good fiber connectivity,” said Doug Fleit, co-founder and CEO of AREP and PowerHouse. “This is the ‘speed to market’ that hyperscale users are demanding today and which provides low latency data transport options back to their campuses and peering sites in Ashburn.”    

PowerHouse 95 will have three 300 MW substations, with the first currently under development and expected to provide 150 MWs by October 2025. Upon completion, the first substation will provide enough power to construct up to eight or more high-density data centers. Harrison Street and AREP will have the flexibility to develop between four to eight powered shells and two additional substations, maximizing optionality for hyperscale tenants.

“PowerHouse 95 is located at the epicenter of one of the fastest growing data center markets in northern Virginia,” said Michael Hochanadel, Managing Director and Head of Digital at Harrison Street. “This is yet another impressive venture between Harrison Street and PowerHouse and demonstrates our collective ability to identify high-quality solutions for the hyperscale community. Our ongoing partnership with AREP continues to accelerate the development of highly sought after data centers that address increasing demand driven by high-powered computing, AI, and other advancements. We look forward to further expanding the Powerhouse platform in both northern Virginia and across key regions in the U.S to deliver the best and fastest solutions to customers.”

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