PowerHouse Secures Data Center Lease Agreement with CyrusOne

PowerHouse DC AshburnPowerHouse Data Centers, a developer and owner of next-generation data centers and technical real estate solutions for hyperscalers in Northern Virginia, has announced a lease agreement with CyrusOne for their ABX-1 data center in Ashburn, Virginia. This “state-of-the-art” facility, encompassing a two-story building spanning 265,000 square feet, will be the first powered shell leased by PowerHouse. 

With plans for substantial completion in October this year, the company’s partnership with CyrusOne would signify a significant milestone in its pursuit of providing innovative data center solutions.

The ABX-1 data center holds a strategic location within the renowned Data Center Alley, a hub renowned for its dense carrier and cloud availability zones. Positioned at the epicenter of this thriving ecosystem, PowerHouse’s ABX-1 is poised to cater to the increasing demands of hyperscalers and operators in the ever-expanding data center market.

Doug Fleit, the co-founder and CEO of PowerHouse and its parent company, American Real Estate Partners (AREP), emphasizes the growing need for real estate solution providers to offer comprehensive services, from land identification and acquisition to data center design and construction. Mr. Fleit’s statement would underscore PowerHouse’s commitment to meet the evolving requirements of its customers by delivering holistic and cutting-edge solutions.

Data Center Development in Northern Virginia

Doug Fleit, the co-founder and CEO of PowerHouse
Doug Fleit, the co-founder and CEO of PowerHouse, emphasizes the growing need for real estate solution providers to offer comprehensive services, from land identification and acquisition to data center design and construction.

PowerHouse Data Centers has positioned itself advantageously to capitalize on the skyrocketing leasing demands in the data center industry. The ABX-1 data center is merely the first of six ambitious projects currently underway in Loudoun County, which will collectively yield an astounding 2.1 million square feet of data center space. By overcoming the region’s challenging land and market limitations, PowerHouse is spearheading a transformative approach to data center development in Northern Virginia.

The lease agreement with CyrusOne would further accentuate the strategic significance of ABX-1’s location within Data Center Alley. Rob Walters, Principal at Avison Young, underscores the value of this location and PowerHouse’s commitment to offering high-performance solutions to its hyperscale customers. The transaction with CyrusOne would represent a vital step in solidifying PowerHouse’s standing as a provider of innovative data center services.

The construction of ABX-1 is backed by a joint venture between AREP and Harrison Street, an investment management firm specializing in alternative real assets. With an extensive commitment of approximately $3 billion in digital network infrastructure assets, Harrison Street is a key player in data center development. Michael Hochanadel, Managing Director and Head of Digital Assets for Harrison Street, expresses excitement about delivering top-tier data center solutions to end-users and operators, such as CyrusOne, and looks forward to collaborating with PowerHouse on future data center projects in the region.

300 MW Capacity

PowerHouse Data Centers has also established critical partnerships to support the ABX-1 data center’s construction and operation. The collaboration with Dominion Energy ensured the provision of bridging power to the site, while plans for a unique on-site GIS substation have been set in motion. The substation, scheduled for completion in 2025, will have a capacity of 300 MW, with more than 60 MW dedicated to powering the ABX-1 facility and the remaining power available for the surrounding area. Mr. Fleit acknowledges Dominion Energy’s pivotal role in the project’s success, highlighting their unwavering commitment to delivering power solutions to the broader community.

Strategic partners such as DPR Construction, Corgan, kW Mission Critical Engineering, Avison Young, and Appleby Strategies Group have also played a crucial role in supporting the ABX-1 project.