American Real Estate Partners (AREP) says it has launched PowerHouse Data Centers as a new division focused on developing data center facilities for hyperscalers in Northern Virginia. PowerHouse will build six data centers comprising 2.1 million square feet of data center space in Northern Virginia.
The new company already has a trio of data center projects underway. The Arcola Data Center project will see construction begin in 2024 with a completion goal of 2026. Arcola will provide 120 MW of maximum capacity power, with 80 MW of critical power for a two-building facility with 614,300 sq. ft. of developable space and a data hall area of 364,100 sq. ft. of space. PowerHouse Pacific, the second project, includes a the former AOL headquarters on Pacific Boulevard; the campus will have three build-to-suit data centers for hyperscale tenants. Finally, PowerHouse ABX-1 at Beaumeade is planned to bring a 265,000 sq. ft. two-story powered data center online in 2023.
AREP has entered a joint venture funding commitment of $1 billion with investment management firm Harrison Street to help support these projects. The company also named Luke Kipfer as vice president of data center development and construction and Jarrett Appleby as data center strategy consultant and senior advisor.
“We are excited to offer a new data center solutions company to meet the rising demand of hyperscalers in Ashburn and change the landscape of Data Center Alley,” says Doug Fleit, co-founder and CEO of AREP and PowerHouse Data Centers. “We provide hyperscalers a unique competitive advantage of an accelerated speed to market while overcoming the challenge of a fierce ‘data center land run.’”
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