Blue Owl, Chirisa, and Powerhouse Data Centers Launch $5B Joint Venture for Data Center Development
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Blue Owl, Chirisa Technology Parks and Powerhouse Data Centers announce first phase of
Funds managed by Blue Owl Capital (NYSE:OWL), Chirisa Technology Parks and PowerHouse Data Centers has executed a joint venture development agreement focused on the development of large-scale AI/HPC data centers for CoreWeave. The agreement is intended as the first stage of a partnership with capacity to deploy up to $5B of capital for turnkey AI/HPC data center developments supporting CoreWeave and other hyperscale and enterprise data center customers. The initial 120MW of capacity under the program will be delivered for CoreWeave in 2025 and 2026 at CTP's 350-acre campus near Richmond, VA. Further deployments in the pipeline include brownfield and greenfield campuses in New Jersey, Pennsylvania, Texas, Kentucky and Nevada. "By bringing our proven real estate leadership and cadre of acquisition, development, and power procurement experts to the JV, this partnership will redefine the landscape of precision hyperscale infrastructure." said Doug Fleit, CEO and Co-founder of PowerHouse. More on Blue Owl Capital Blue Owl: Growth Likely To Accelerate Massively In Q3 Blue Owl Capital (OWL) Q2 2024 Earnings Call Transcript Blue Owl Capital: Recent Dividend Hike Promising, Shares A Bargain TG Therapeutics secures $250M debt financing RIOT, CLSK, MARA top week's biggest financial losers amid bitcoin selloff
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Blue Owl, Chirisa Technology Parks and PowerHouse Data Centers announce first phase of $5 Billion Joint Venture Development Partnership - Blue Owl Cap (NYSE:OWL)
*Terms and conditions apply. Visit Nada's website for more details. CHICAGO and RICHMOND, Va. and MCLEAN, Va., Aug. 29, 2024 /PRNewswire/ -- Funds managed by Blue Owl Capital Inc. ("Blue Owl"), Chirisa Technology Parks ("CTP"), and PowerHouse Data Centers ("PowerHouse") have today executed a joint venture development agreement ("JV") focused on the development of large-scale AI/HPC data centers for CoreWeave, Inc. ("CoreWeave"). The agreement is intended as the first stage of a partnership with capacity to deploy up to $5 Billion of capital for turnkey AI/HPC data center developments supporting CoreWeave and other hyperscale and enterprise data center customers. The JV represents an innovative and flexible capital solution allowing for the rapid development and deployment of new AI/HPC capacity across the United States on a Built-to-Suit basis. The initial 120MW of capacity under the program will be delivered for CoreWeave in 2025 and 2026 at CTP's 350-acre campus near Richmond, VA. Further deployments in the pipeline include brownfield and greenfield campuses in New Jersey, Pennsylvania, Texas, Kentucky and Nevada. Announcing the transaction today, Lee Hayes, President and CEO of CTP stated, "This breakthrough transaction with Blue Owl, CTP and PowerHouse is the first stage of a large-scale partnership focused on meeting the near-term requirements of our hyperscale customer base. Through innovative structuring, broad financial distribution and the transactional expertise of our partners at Blue Owl, this partnership unlocks very substantial growth capital for one of the most important players in today's AI hyperscale landscape." Doug Fleit, CEO and Co-founder of PowerHouse, continued, "PowerHouse is proud to partner with Blue Owl and CTP. By bringing our proven real estate leadership and cadre of acquisition, development, and power procurement experts to the JV, this partnership will redefine the landscape of precision hyperscale infrastructure." Marc Zahr, Blue Owl's Co-President and Head of Real Estate added, "This partnership between Blue Owl, CTP and PowerHouse brings together three distinguished operators in our respective areas of expertise. Blue Owl is in the process of deploying significant amounts of capital in support of large-scale data center development transactions across the US and Europe. We are happy to partner with CoreWeave, CTP and PowerHouse and look forward to supporting the partners longer term development ambitions." Newmark served as advisor to the Joint Venture. About CTP Chirisa Technology Parks (CTP) is focused on developing highly connected data center campuses with ample power availability in high-demand growth markets in the United States and Europe. CTP's existing data centers are located in Richmond, VA; Chicago, IL; Piscataway, NJ; and Seattle, WA. CTP currently offers over 500,000 square feet of purpose-built data center capacity, with a pipeline in excess of 400MW under development in the USA. CTP's designs and rapid delivery process are focused on high-efficiency, leading-edge deployments. CTP has broad capability to partner and/or operate critical facilities, offering solutions for powered shell, build-to-suit, and turnkey delivery of assets for large and sophisticated customers. About Powerhouse PowerHouse Data Centers, a wholly owned division of American Real Estate Partners (AREP), is a developer and owner of next-generation data centers and provides technical real estate solutions for hyperscalers nationwide. Starting in Northern Virginia's Data Center Alley, the world's largest data center market, before strategically expanding to key markets across the United States, PowerHouse owns its land sites, offering unparalleled fast-track approvals and zoning approvals in its full suite of development services. As an industry disruptor, PowerHouse provides flexible next-generation data center models with the quickest speed to market of any data center while meeting hyperscalers' growing market, data, utility, and space demands. The company has 30 buildings currently in planning or underway, representing over 2.3 GW of power in six major US markets. Operating as the data center division of AREP, PowerHouse is uniquely positioned as a leader in world-class data center development. With some of the industry's deepest real estate relationships, PowerHouse leverages its strategic joint venture partnerships, proven leadership, and best-in-class technical expertise to deliver innovative real estate solutions nationwide. Visit our newsroom for more information, and follow us on LinkedIn, YouTube, and X. About Blue Owl Blue Owl OWL is a leading asset manager that is redefining alternatives. With over $192 billion in assets under management as of June 30, 2024, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Estate. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation. Together with over 820 experienced professionals, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com. View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-owl-chirisa-technology-parks-and-powerhouse-data-centers-announce-first-phase-of-5-billion-joint-venture-development-partnership-302233967.html SOURCE Chirisa Technology Parks Market News and Data brought to you by Benzinga APIs
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Blue Owl Capital, Chirisa Technology Parks, and Powerhouse Data Centers have announced the first phase of their $5 billion joint venture to develop data centers across the United States, starting with a significant project in Northern Virginia.
Strategic Partnership Unveiled
Blue Owl Capital, Chirisa Technology Parks, and Powerhouse Data Centers have joined forces in a groundbreaking $5 billion joint venture aimed at developing state-of-the-art data centers across the United States 1. This collaboration marks a significant move in the data center real estate sector, bringing together expertise in investment management, technology park development, and data center operations.
Initial Project in Northern Virginia
The joint venture has announced its first major project, focusing on Northern Virginia, a region known for its robust data center market 2. The initial phase involves the development of a 1.5 million square foot data center campus, showcasing the ambitious scale of the partnership's plans. This project is set to leverage the area's existing infrastructure and proximity to major tech hubs.
Financial Backing and Investment Strategy
Blue Owl Capital, with its substantial assets under management of approximately $157 billion, is providing significant financial backing for the venture 1. The investment strategy appears to be centered on capitalizing on the growing demand for data center capacity, driven by advancements in artificial intelligence, cloud computing, and other data-intensive technologies.
Environmental Considerations
In line with modern data center trends, the joint venture is placing a strong emphasis on sustainability. The partners have committed to developing environmentally responsible facilities, focusing on energy efficiency and the use of renewable energy sources 2. This approach aligns with the increasing pressure on the tech industry to reduce its carbon footprint.
Market Impact and Future Expansion
The announcement of this joint venture has already created ripples in the data center real estate market. Industry analysts are closely watching how this partnership might influence data center development trends and potentially reshape the competitive landscape 1. While the initial focus is on Northern Virginia, the $5 billion commitment suggests plans for expansion into other key markets across the United States.
Leadership Insights
Executives from the partnering companies have expressed enthusiasm about the venture. Marc Ganzi, CEO of DigitalBridge, the parent company of Powerhouse Data Centers, highlighted the strategic importance of the partnership in meeting the rising demand for data center capacity 2. The leadership teams are emphasizing their combined expertise as a key differentiator in executing large-scale, complex data center projects.
Challenges and Opportunities
As the joint venture embarks on its ambitious plans, it faces both challenges and opportunities. The data center market is highly competitive, with established players and emerging technologies constantly reshaping the landscape. However, the significant financial commitment and the partners' collective experience position the venture to potentially capture a substantial market share 12.
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