New Data Center Company Launched in Ashburn Backed by $1Bn Investment

PowerHouse Data Centers

The debut of PowerHouse Data Centers, a “next-generation” data center business that provides technical real estate solutions for hyperscalers in Northern Virginia, has been announced by American Real Estate Partners (AREP). In Northern Virginia, PowerHouse Data Centers intends to construct six data centers totaling 2.1 million square feet of space.

The Arcola Data Center project by PowerHouse, scheduled for completion in 2026, will offer 120 MW of maximum capacity power, 80 MW of critical power, and two buildings with a combined developable area of 614,300 square feet and a data hall size of 364,100 square feet.

The former AOL headquarters in Ashburn, now branded as PowerHouse Pacific, is another of the company’s data center campuses and will house three cutting-edge, custom-built data centers for hyperscale clients.

PowerHouse ABX-1 at Beaumeade, a 265,000 square foot, two-story powered data center, is one of the other projects now under development. It is expected to be operational in 2023.

A $1 billion joint venture agreement to design and build top-notch data centers with AREP and Harrison Street supports the building. Harrison Street, one of the top investment management companies specializing solely in alternative real estate assets, spent over $2.4 billion in digital assets, such as powered data centers, strategic colocations, and dark fiber. North America, Europe, the Middle East, Asia, and Latin America are all regions where Harrison Street has clients.

Rising Demand of Hyperscalers in Ashburn

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’,” said Doug Fleit, Co-founder and CEO of AREP and PowerHouse Data Centers.

In order to satisfy the growing market, data, and space demands as well as the obstacles faced by hyperscalers in Data Center Alley, PowerHouse Data Centers offers customizable data center models with the quickest speed to market of any Ashburn project.

In the core of the greatest data center market in the world, PowerHouse Data Centers provides exclusive fast-track permits and zoning approvals and controls its land locations. Luke Kipfer and Jarrett Appleby, two well-known telecom professionals, were recently chosen to lead PowerHouse Data Centers’ development of next-generation data centers in Northern Virginia.

“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,” said 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’.”

PowerHouse Data Centers uses their in-house development team and decades-long relationships in the area to build out projects from site planning to customized data center completion. The data center models would provide Build-to-Suit and Build-to-Spec configurations with robust connectivity, future-proofing, and customization.

“We are constantly evolving to meet hyperscaler needs with our fast, flexible and scalable Build-to-Suit data center solutions to fully meet their exacting specifications,” said Greg Rowles, Managing Director, Development and Construction at PowerHouse Data Centers. “PowerHouse handles all the heavy lifting from site selection and evaluation, data center design and construction, to infrastructure build-out and delivery.”