Press Release

AREP Debuts PowerHouse Data Centers as an All-In-One Solution to the Ashburn Data Center Market

September 13, 2022

PowerHouse Data Centers Owns Land Sites and Provides Flexible Data Center Models for Hyperscalers seeking a one-stop solution to meet Ashburn requirements.

McLEAN, Virginia —  September 13, 2022American Real Estate Partners (AREP) announces the launch of PowerHouse Data Centers, a next-generation data center company that offers technical real estate solutions for hyperscalers in Northern Virginia. PowerHouse Data Centers has plans to build six data centers representing 2.1 million square feet of data center space in Northern Virginia. 

PowerHouse’s Arcola Data Center project, set for completion in 2026 will provide 120 MW of max capacity power, with 80 MW of critical power for a two-building facility with 614,300 sq. ft. of developable space and a data hall area of 364,100 sq. ft. of space. PowerHouse’s data center campuses also include the site of the former AOL headquarters on Pacific Boulevard in Ashburn known as PowerHouse Pacific, which will host three state-of-the-art data center build-to-suit data centers for hyperscale tenants. Other projects under construction include PowerHouse ABX-1 at Beaumeade, which is bringing a 265,000 sq. ft. two-story powered data center online in 2023.

The construction is also backed by a $1 billion joint venture commitment with  AREP and Harrison Street to develop and construct world-class data centers. As one of the leading investment management firms focused exclusively on alternative real estate assets, Harrison Street invested approximately $2.4 billion in digital assets that include powered data centers, strategic colocations and dark fiber. Harrison Street has clients in North America, Europe, the Middle East, Asia and Latin America. 

PowerHouse Data Centers delivers flexible data center models with the quickest speed to market of any Ashburn project while meeting the exploding market, data and space demands and challenges facing hyperscalers in Data Center Alley. 

PowerHouse Data Centers owns its land sites and offers unique fast-track approvals and zoning approvals in the heart of the world’s largest data center market. Recently, two prominent telecom veterans, Luke Kipfer and Jarrett Appleby, were appointed to drive PowerHouse Data Centers’ deployment of next-generation data centers in Northern Virginia. 

“We are excited to offer a new data center solutions company to meet the rising demand of hyperscalers in Ashburn and change the landscape of Data Center Alley,” says Doug Fleit, Co-founder and CEO of AREP and PowerHouse Data Centers. “We provide hyperscalers a unique competitive advantage of an accelerated speed to market while overcoming the challenge of a fierce ‘data center land run’.”

We utilize our in-house development team and decades-long relationships in the area to build out your project from site planning to customized data center completion. The data center models provide Build-to-Suit and Build-to-Spec configurations with robust connectivity, future-proofing and customization.

“We are constantly evolving to meet hyperscaler needs with our fast, flexible and scalable Build-to-Suit data center solutions to fully meet their exacting specifications,” comments Greg Rowles, PowerHouse Data Centers Managing Director, Development and Construction. “PowerHouse handles all the heavy lifting from site selection and evaluation, data center design and construction, to infrastructure build-out and delivery.”  

For more information about the unique Arcola, Pacific and ABX-1 data center opportunities in Ashburn, click here to connect with the PowerHouse team or visit to learn more.