PowerHouse Data Centers Executes Hyperscale Lease at PowerHouse Arcola, Advancing Northern Virginia Expansion

New agreement reinforces PowerHouse Arcola's role as a strategic growth hub for AI and cloud infrastructure

MCLEAN, Va., Jan. 15, 2026 /PRNewswire/ -- PowerHouse Data Centers, a leading real estate developer for next-generation hyperscale data centers and a division of American Real Estate Partners (AREP), today announced the execution of a long-term hyperscale lease at its PowerHouse Arcola campus in Loudoun County, Virginia. The agreement marks a significant milestone for the campus and advances PowerHouse's continued expansion in Northern Virginia, one of the world's most important data center markets. PowerHouse Arcola's initial development was funded through AREP Strategic Opportunity Fund III, which supports PowerHouse's development of power-secured hyperscale and AI-ready campuses across its national portfolio.

"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."

PowerHouse Arcola is located near the intersection of Route 50 and Loudoun County Parkway, within close proximity to the region's dense fiber networks, utility infrastructure, and major interconnection hubs. The 37-acre campus will feature two two-story data center buildings totaling 615,000 square feet and is designed to support up to 120 MW of utility capacity, providing hyperscale customers with a highly efficient, power-secured platform for AI, cloud, and high-performance computing workloads.

"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," said 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.

The PowerHouse Arcola campus features an on-site substations, Tier III+/IV-ready design, and high-density support for GPU and liquid-cooled environments. PowerHouse Arcola is being developed to achieve LEED BD+C certification, with sustainability features that include outdoor water-use reduction, construction waste management, tree buffer conservation and reforestation, and electric vehicle charging stations. The campus will also set a new architectural aesthetic standard for Data Center Alley, with a visually refined and environmentally responsible design.

The campus also offers direct fiber connectivity to major interconnection and cloud platforms. Dark fiber routes provide low-latency access to Ashburn and Manassas, supporting large-scale deployments and hybrid platforms. The Arcola lease builds on PowerHouse's broader national expansion across Northern Virginia and strategic Tier I and Tier II U.S. markets, as the company continues to bring large-scale, power-secured campuses to market.

About PowerHouse Data Centers 

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 across the country. 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 118 buildings currently in planning, underway, or completed, representing over 8.1 GW of power in eight major U.S. markets, providing power delivery for its projects in 2026/2027. 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. 

SOURCE PowerHouse Data Centers