PowerHouse Data Centers recently announced that it had signed a lease for the entirety of its ABX-1 data center in Ashburn, Va.: Premier global data center operator CyrusOne Inc. signed a 30-year lease agreement for the property.

Located at 21529 Beaumeade Circle, the two-story project includes nearly 266,000 square feet of Ashburn office and data center space, with substantial completion expected this October.

Uniquely positioned at the heart of one of the densest carrier and cloud availability zones in the world, ABX-1 was a speculative development and the first of PowerHouse’s six data center build sites in Loudoun County, Va. Representing more than 2 million square feet of data center space in development, this pipeline positions PowerHouse to benefit from skyrocketing leasing demands in the data center space sector.

The Washington, D.C. metropolitan area has long been the largest office and industrial data center market in the U.S. Known for its high concentration of collocation infrastructure, the state of Virginia specifically is reportedly home to more than one-third of America’s hyperscale data center capacity. Located primarily in just three counties (Loudoun, Prince William, and Fairfax), the still-growing data center sector has been increasingly grappling with limited land availability.

Amid growing concerns regarding the effects of data center development on the neighboring communities, PowerHouse worked closely with regional utility provider Dominion Energy to secure bridging power to the site, as well as to plan the development of a unique GIS substation on site. Upon completion, the 300-megawatt substation will deliver more than 60 megawatts of power to ABX-1, with the rest available for use in the surrounding area. The substation is currently under construction and expected to be energized by the end of 2025.

“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,” said Doug Fleit, PowerHouse co-founder and CEO. “Without Dominion Energy’s strong commitment to our site and dedicated partnership, we wouldn’t be where we are today. 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.”

PowerHouse is a joint venture between American Real Estate Partners (AREP) and investment management firm Harrison Street. Strategic ABX-1 project partners include Dominion Energy, DPR Construction, Corgan, kW Mission Critical Engineering, Avison Young, and Appleby Strategies Group.

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