Harrison Street, AREP plan $1bn data centre expansion in Virginia

Harrison Street, AREP plan $1bn data centre expansion in Virginia

AI-generated image of a generic data centre server room

A joint venture between investment firm Harrison Street and AREP’s PowerHouse Data Centers unveiled plans to invest $1 billion in six data centres in Virginia’s Data Centre Alley.

The plans will see six spans spanning a total of 2.1 million square feet in Data Centre Alley, a cluster of facilities in Ashburn and Arcola in what is the largest and most connected data centre submarket in the US.

The new campuses will accommodate six buildings ranging from 265,000 to 440,000 square feet — with the plans including the former AOL headquarters, currently used by Yahoo.

Once completed, the projects aim to offer low energy costs for tenants and landlords in the fastest-growing data centre market in the US.

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Doug Fleit, co-founder of AREP and PowerHouse Data Centers, said: “The demand for more data centres is simply based upon our society’s move to an even more integral life with technology.

“We are creating not just exponentially more data but new and ever more useful ways to apply that data. All of this speaks to a long-term data centre trend for markets like Ashburn, Virginia.”

The Ashburn campus will feature four of the six data centres, designed for hyperscale tenants, offering 300 MW of capacity.

The Arcola campus, meanwhile is located on Arcola Boulevard — directly across the street from Google’s new development, and near Dulles International Airport.

The Arcola sites will include two shell build-to-suit data centres with around 100 to125 MW of capacity.

The joint venture has already broken ground on an earlier development, ABX-1, a 265,000-square-foot two-story site in Beaumeade, which will sit directly on top of the Ashburn Fibre Ring.

“This transaction, in partnership with AREP, provides us with unique data centre campuses and immediate scale in an attractive network-dense region ensuring hyperscale cloud providers and high-quality colocation operators have the capacity they need to support their customers,” said Michael Hochanadel, managing director and head of digital real estate at Harrison Street.

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