PowerHouse Data Centers Plans Massive Projects In Virginia, Nevada

PowerHouse Data Centers launched in 2022. It is owned by American Real Estate Partners. Its two newest projects in Reno and Viriginia are supported by $1 billion investment from Harrison Street JV.

PowerHouse Data Centers has two massive projects underway to begin the new year, with a three-building site under development in Reno, Nevada, as well as the PowerHouse 95 data center campus being constructed in Virginia.

The massive 145-acre campus in Virginia, dubbed PowerHouse 95, is expected to hold 900 megawatts of capacity, spread over three, 300-megawatt substations, once it is completed. The first is expected to deliver 150 megawatts of capacity by October 2025.

PowerHouse said the Reno facility will provide 65 megawatts of capacity to the Tahoe Reno Industrial Center by October 2025, which the company said is one of the fastest-growing tech hubs in the country. PowerHouse said the Reno and Tahoe region has the land and power needs that data center providers are looking for.

The Reno facility will be placed near several key Western markets, giving customer’s access to renewable energy, a local workforce, competitive tax rates and abatements, PowerHouse said in a statement.

“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” Doug Fleit, co-founder and CEO of PowerHouse, said in a statement. “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.”

American Real Estate Partners created PowerHouse Data Center in September 2022. It billed PowerHouse as a “next-generation data center company that offers technical real estate solutions for hyperscalers in Northern Virginia.”

The two newest projects are backed by Harrison Street JV, which has committed $1 billion in funding to the company for data center construction, according to a press release. PowerHouse Reno – the company’s first project outside of Northern Virginia -- is a three-building, 900,000 square foot powered shell data center campus.

In Virginia, the PowerHouse 95 project will host three, 300 megawatts facilities on land in Spotsylvania. The company said power constraints are hitting the area’s grid, but Powerhouse 95 is positioned near Interstate 95, with two substations offering “imminent access to power.”

Additionally, PowerHouse is building four developments in northern Virginia, which are expected to bring 700 megawatts of capacity online when they are completed. The company is appealing to hyperscale customers.