CyrusOne is to lease a newly-built data center in Ashburn, Northern Virginia, from PowerHouse.

PowerHouse this week announced it has signed a deal with CyrusOne for a 30-year powered shell lease of its ABX-1 data center campus. CyrusOne has yet to make an official announcement on the news.

American Real Estate Partners (AREP) launched PowerHouse in partnership with Harrison Street last year. ABX-1 represents the company's maiden project.

Sat on 10 acres at 21529 Beaumeade Circle, ABX-1 will comprise one two-story 265,000 sq ft (25,000 sqm) building. The first 15MW will launch in October 2023; at full build-out, the facility will offer 54MW across six data halls. The site is reportedly expandable up to 80MW.

ABX-1 will eventually feature a 300MW substation from Dominion, with power not used by ABX-1 available for the surrounding area.

"Now more than ever, hyperscalers and operators are looking for real estate solution providers to handle everything from land identification and acquisition to data center design and construction," said Doug Fleit, co-founder and CEO of AREP and PowerHouse.

Michael Hochanadel, managing director and head of digital assets for Harrison Street, added: "Northern Virginia is the most active data center market in the world and we are excited to be able to deliver data center solutions to end users and operators such as Cyrus One, to fit-out and support their customers. We look forward to working closely with PowerHouse to develop more data centers in the region."

Harrison Street and AREP acquired the site for $21.5 million in January 2021. The land, formerly home to a retail strip mall-type facility, was previously owned by Chirisa Investments, which bought the site in 2018 and had planned to build a 280,000 sq ft (26,000 sqm), 30MW data center.

PowerHouse is developing three sites across Northern Virginia. Six buildings are currently in planning or underway totaling 2.1 million sq ft (195,100 sqm) and up to 338MW of critical power.

On Sterling’s Pacific Boulevard, PowerHouse Pacific will comprise three three-story buildings comprising 24 data halls across 1.1 million sq ft (102,200 sqm). Construction is due to start in 2024 and complete in 2024/2025; the site will offer 265 MW.

The Pacific campus was previously part of the former AOL headquarters and most-recently used by Yahoo!. Yahoo Inc. and Oath sold the 43.3-acre property to Pacific Ashburn Campus LLC in December for $136 million.

Sat on 23 acres in Arcola’s Arcola Boulevard, PowerHouse Arcola will comprise two two-story buildings and 12 data halls across 614,300 sq ft (57,070 sqm). The buildings will offer 54MW and 66MW. Construction is due to begin on the first building in April 2024 and end in 2025, with the second building finished in 2026.

CyrusOne’s current Virginia portfolio spans more than 2.5 million sq ft (232,250 sqm) across at least five buildings, largely around the Sterling and Ashburn areas. In January the company acquired a 57.6-acre land parcel in Ashburn located near the intersection of the Dulles Greenway toll road and Belmont Ridge Road.