PowerHouse Data Centers Announces Lease Agreement with CyrusOne for ABX-1 Data Center Powered Shell
MCLEAN, Va., May 12, 2023 /PRNewswire/ -- PowerHouse Data Centers (PowerHouse) announced today that it has secured a 30-year lease agreement with CyrusOne Inc., a premier global data center operator, for the entire spec-built data center, ABX-1, located in Ashburn, Virginia. PowerHouse is a joint venture between American Real Estate Partners (AREP) and Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, that offers powered shell and build-to-suit data center solutions.
The ABX-1 data center in Loudoun County, featuring a two-story 265,000 SF building with an on-site electrical substation, is the first powered shell leased by PowerHouse Data Centers. The Company has five other data center projects underway.
MCLEAN, Va., May 12, 2023 /PRNewswire/ -- PowerHouse Data Centers (PowerHouse) announced today that it has secured a 30-year lease agreement with CyrusOne Inc., a premier global data center operator, for the entire spec-built data center, ABX-1, located in Ashburn, Virginia. PowerHouse is a joint venture between American Real Estate Partners (AREP) and Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, that offers powered shell and build-to-suit data center solutions.
Substantial completion of this inaugural purpose-built data center is scheduled for October. The two-story, 265,000 SF powered shell is located at 21529 Beaumeade Circle in the heart of Data Center Alley and is uniquely positioned at the epicenter of one of the world's densest carrier and cloud availability zones.
"Now more than ever, hyperscalers and operators are looking for real estate solution providers to handle everything from land identification and acquisition to data center design and construction," says Doug Fleit, co-founder and CEO of AREP and PowerHouse.
Powerhouse Data Centers remain well-positioned to take advantage of skyrocketing leasing demands. ABX-1 is just the first of PowerHouse's six data center build sites, representing 2.1 million square feet of data center space under construction in Loudoun County. Currently offering two additional campus opportunities in the world's most robust data center market, Powerhouse is disrupting the status quo by overcoming limiting land and market challenges in within the Northern Virginia region.
"This transaction demonstrates the value of ABX-1's strategic location within Data Center Alley and Powerhouse's commitment to further provide innovative high-performance solutions to its hyperscale customers," says Rob Walters, Principal at Avison Young.
The construction for ABX-1 is backed by a joint venture between AREP and Harrison Street to develop world-class data centers. "Northern Virginia is the most active data center market in the world and we are excited to be able to deliver data center solutions to end users and operators such as Cyrus One, to fit-out and support their customers," says Michael Hochanadel, Managing Director and Head of Digital Assets for Harrison Street. "We look forward to working closely with PowerHouse to develop more data centers in the region."
Harrison Street is one of the leading investment management firms focused exclusively on alternative real assets. The firm has committed approximately $3 billion in digital network infrastructure assets, including powered shell data centers, colocation facilities, carrier hotels and dark fiber providers.
PowerHouse Data Centers worked hand in hand with Dominion Energy to secure bridging power to the site, while also planning the development of a unique GIS on-site substation. ABX-1 will eventually feature the 300 MW substation, which will deliver more than 60 MW of power to the facility, with the rest available for the surrounding area. The substation commenced construction in February and is expected to be energized by the end of 2025.
"Without Dominion Energy's strong commitment to our site and dedicated partnership, we wouldn't be where we are today," Fleit says. "We are focused on addressing rising data center demand, and we are fortunate to have a power partner in Dominion Energy that works tirelessly to deliver power solutions to the broader community." In addition to Dominion Energy, strategic partners for ABX-1 include DPR Construction, Corgan, kW Mission Critical Engineering, Avison Young and Appleby Strategies Group.
For more information about other unique data center opportunities, click here to contact the PowerHouse team or visit www.powerhousedata.com to learn more.
About PowerHouse Data Centers
PowerHouse Data Centers, a division of AREP, is a developer and owner of next-generation data centers and technical real estate solutions for hyperscalers in Northern Virginia. The Company owns its land sites, offering unique fully entitled tracts and fast-track approvals right in the heart of the world's largest data center market as well as other strategic data center markets in the county. As a disruptor, PowerHouse Data Centers provides flexible 'Powered Shell' next-generation data center models with the quickest speed to market of any Ashburn project while meeting hyperscalers' growing market, data, and space demands. PowerHouse Data Centers is committed to building six powered shell data centers representing 2.1 million square feet of data center space in Northern Virginia. For more information, visit www.powerhousedata.com and follow us on LinkedIn and Twitter.
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About CyrusOne
CyrusOne is a leading global data center developer and operator specializing in delivering state-of-the-art digital infrastructure solutions across the globe. With more than 50 high-performance mission-critical facilities worldwide, the Company ensures the continued operation of digital infrastructure for nearly 1,000 customers, including approximately 200 Fortune 1000 companies. CyrusOne's leading global platform of hybrid-cloud and multi-cloud deployments offers customers colocation, hyperscale, and build-to-suit environments, which help enhance the strategic connections of their essential data infrastructures and support the achievement of sustainability goals. CyrusOne data centers offer world-class flexibility, enabling clients to modernize, simplify, and rapidly respond to changing demands. For more information, please visit cyrusone.com.
About Harrison Street
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets. The firm has invested across senior housing, student housing, healthcare delivery, life sciences and storage real estate as well as social and utility infrastructure. Headquartered in Chicago with offices in London, Luxembourg, New York, San Francisco, Tokyo, Toronto and Washington DC, the firm has more than 250-employees and approximately $55 billion in assets under management. Clients of the firm include a global institutional investor base domiciled in North America, Europe, Middle East, Asia and Latin America. Harrison Street has been awarded Best Places to Work by Pensions Investments for eight years (2014-2020, 2022) and has won multiple awards from PERE, including five for the 2022 Awards: Alternatives Investor of the Year - Global, Industry Figure of the Year - Global, Residential Investor of the Year - Global, Data Centers Investor of the Year - Global, and Residential Investor of the Year - North America. For more information, please visit www.harrisonst.com.
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