PowerHouse Data Centers has signed an unnamed hyperscaler at its PowerHouse Arcola campus in Loudoun County, Virginia.

The lease is described as long-term, though it has not been stated if the hyperscaler will take up all the capacity at the campus. DCD has contacted PowerHouse for clarification.

PowerHouse Arcola
– PowerHouse Data Centers

PowerHouse Arcola is located near the intersection of Route 50 and the Loudoun County Parkway. Spanning 37 acres, it will house two two-story data center buildings with a total of 615,000 sq ft (57,135 sqm) of floor space and 120MW of capacity once fully built out.

The Arcola campus has been in the works since 2022, when American Real Estate Partners (AREP) launched PowerHouse Data Centers. At that time, the company said construction was due to begin in April 2024 and end in 2025, with the second building finished in 2026. PowerHouse's website now estimates a delivery of Q4 2026-Q1 2027.

The campus was funded through the AREP Strategic Opportunity Fund III.

The campus has on-site substations and can handle high-density workloads, supporting GPUs and liquid-cooled environments. Additionally, the campus has direct fiber connectivity to major interconnection and cloud platforms.

"PowerHouse Arcola's lease execution underscores the trust hyperscale operators place in our ability to deliver capacity in the most power‑constrained and competitive markets," said Douglas Fleit, CEO and co-founder of AREP & PowerHouse Data Centers. "Arcola provides a power‑secure, fiber‑dense campus in the heart of Data Center Alley, offering hyperscale customers a purpose‑built environment with the scale, connectivity, and certainty they demand."

"Demand for secure, scalable digital infrastructure powering AI, cloud, and enterprise growth has never been stronger. These fundamentals remain central to AREP's Fund investment thesis, giving us the framework to advance larger, campus‑scale developments," added Brian Katz, president and co-founder of AREP & PowerHouse Data Centers. "Arcola exemplifies how we deploy fund capital with discipline, securing extended lease terms, creating long‑term value for our investors, and delivering power‑ready capacity for hyperscale customers."

While PowerHouse has not detailed the hyperscaler customer, the company is part of a joint venture with Blue Owl and Chirisa to develop data centers for CoreWeave and other hyperscalers. Northern Virginia is also home to hyperscalers, including Amazon Web Services, Microsoft, and Google.

In addition to the Arcola campus, PowerHouse has data centers - 118 buildings - either planned, in development, or in operation in eight US markets. The company started with Northern Virginia, but has since expanded into other locations, including Texas, Kentucky, Pennsylvania, and others.