In a series of strategic expansions, PowerHouse Data Centers, a subsidiary of American Real Estate Partners (AREP) and a key player in the next-generation data center arena, has achieved significant milestones with the acquisition of two major sites in the United States. This move signifies a substantial leap in the company’s footprint, extending beyond its traditional stronghold in Northern Virginia.
The first of these expansions is the closing on the site of ‘PowerHouse Reno,’ a sprawling 900,000 square foot data center campus located in Reno, Nevada. This facility, backed by a joint venture between PowerHouse and Harrison Street, marks PowerHouse’s inaugural venture outside of Northern Virginia. Poised to be operational by the end of 2025, PowerHouse Reno is set to deliver over 65 MW of bridging power. Its location in the Tahoe Reno Industrial Center (TRIC), the largest industrial park in the United States, strategically positions it to cater to the burgeoning data needs of leading hyperscale users in the region.
Reno, evolving into one of the nation’s fastest-growing tech hubs, presents an optimal setting for such a large-scale data center. Factors like its central location to key Western markets, access to low-cost renewable energy, a qualified workforce, competitive tax rates, and an overall business-friendly environment make it an attractive destination. The combined expertise of AREP and the PowerHouse Harrison Street JV is expected to transform PowerHouse Reno into a leading solution in this highly connected, rapidly growing data center market.
“As the growth of AI throughout all industries continues to push hyperscale demand roll out, sites like PowerHouse Reno will serve the market with near term power delivery at attractive costs with reliable renewable energy components” said Doug Fleit, co-founder and CEO of AREP and PowerHouse Data Centers. “This is another important addition to our portfolio of data centers and we are extremely pleased to be continuing our relationship with Harrison Street as our partner in this venture.”
Hyperscale Cloud Users
Simultaneously, PowerHouse has cemented its presence in Spotsylvania, Virginia, with the purchase of a 145-acre site set to become the PowerHouse 95 data center campus. This acquisition, alongside PowerHouse Reno, is part of PowerHouse’s joint venture with Harrison Street and is one of two recent significant transactions by the company. In addition to these new ventures, PowerHouse is developing four other projects in Northern Virginia, cumulatively surpassing 700 MW.
Located along the I-95 corridor, Powerhouse 95 aims to serve the intense data demands of hyperscale users in Northern Virginia, currently one of the largest data center markets globally. The region, facing power constraints, would position Powerhouse 95 advantageously with its proximity to two existing substations providing imminent power access.
“The site will appeal to hyperscale users that seek well located developments with access to power and good fiber connectivity,” added Doug Fleit. “This is the ‘speed to market’ that hyperscale users are demanding today and which provides low latency data transport options back to their campuses and peering sites in Ashburn.”
The PowerHouse 95 campus will feature three 300 MW substations, with the first slated to provide 150 MW by October 2025. This initial phase alone is expected to support the construction of up to eight or more high-density data centers. The flexibility in development plans, allowing for four to eight powered shells and two additional substations, maximizes the options available for hyperscale tenants.
These strategic expansions by PowerHouse Data Centers highlight a significant shift in the data center landscape, with the company poised to meet the escalating data requirements of hyperscale users across different regions in the United States. As the data center industry continues to evolve, PowerHouse’s ventures in Reno and Virginia represent a proactive approach to addressing the complex, rapidly changing demands of the digital world.
