$600 Million Loan to Drive CoreWeave’s Data Center Development
A joint venture between Blue Owl, Chirisa Technology Parks, and PowerHouse Data Centers has secured a substantial $600 million construction loan for its upcoming data center development in Virginia. The funding, provided by Societe Generale SA and arranged by Newmark Group Inc., marks a significant milestone for the venture’s ambitious digital infrastructure plans.
The data center will be located on Chirisa’s expansive 350-acre site near Richmond, Virginia, and will primarily serve AI cloud provider CoreWeave.
Plans for a 120MW Capacity Facility
The new data center is set to deliver an initial 50MW of capacity by 2025, with eventual plans to expand to a 120MW facility. The site aligns with growing market demand for large-scale, AI-driven cloud infrastructure, providing CoreWeave with critical resources to meet increasing computational workloads.
Jordan Roeschlaub, co-president of global debt and structured finance at Newmark Group, highlighted the significance of this project: “This transaction reflects the continued appetite for innovative, large-scale digital infrastructure solutions in key markets.”
Blue Owl, Chirisa, and PowerHouse: Key Players in the Data Center Sector
Blue Owl Capital’s Growing Presence
Blue Owl Capital, a leading asset management firm, boasts $192 billion in assets under management. The firm has aggressively expanded its digital infrastructure portfolio, acquiring IPI Partners for $1 billion earlier this year and finalizing a $3.4 billion joint venture with Crusoe Energy Systems in October 2024.
Chirisa Technology Parks
Chirisa Technology Parks, known for its strategic data center campuses, provides the physical infrastructure for this project. Their Richmond site offers ample space and power availability, making it an ideal location for AI and cloud providers like CoreWeave.
PowerHouse Data Centers
PowerHouse specializes in delivering scalable, high-performance data center solutions, ensuring the project meets the rigorous requirements of modern AI and cloud workloads.
Together, these partners aim to deliver up to $5 billion worth of data center developments over the coming years.
CoreWeave: Driving Demand for AI-Centric Infrastructure
CoreWeave, the primary tenant for the new facility, is a cloud provider specializing in AI and machine learning workloads. As AI adoption surges across industries, CoreWeave’s infrastructure demands continue to grow exponentially. The Virginia data center will play a critical role in supporting its cloud computing services, enhancing its capacity to handle AI-driven applications.
CoreWeave’s partnership with Blue Owl and its collaborators underscores the increasing focus on high-performance data centers capable of powering AI and other next-generation technologies.
Why Virginia? The State’s Growing Role in Data Center Development
Virginia continues to solidify its reputation as a leading hub for data centers in the United States. Several factors make Virginia an attractive choice for digital infrastructure projects:
Strategic Location and Power Availability
Richmond’s proximity to key metropolitan areas, coupled with its robust energy grid, positions it as an ideal site for large-scale data center developments. The Chirisa campus, in particular, offers abundant land and power resources to support the needs of AI workloads.
Business-Friendly Environment
Virginia’s favorable tax incentives and streamlined regulatory processes encourage investments in data center infrastructure. The state’s policies have attracted major cloud and technology players, solidifying its position as the “Data Center Alley” of the U.S.
Growing Demand for AI Infrastructure
With the rapid adoption of artificial intelligence, the demand for scalable, high-performance data centers continues to surge. Facilities like CoreWeave’s upcoming Richmond site are essential to meeting the computational needs of AI-driven businesses.
What This Means for the Future of Data Centers
The $600 million construction loan is part of a broader trend toward increased investment in digital infrastructure. As cloud computing and AI adoption grow, large-scale data centers are becoming critical components of global digital ecosystems.
For CoreWeave, the new facility will provide the capacity and scalability required to meet expanding workloads. For Blue Owl, Chirisa, and PowerHouse, the project showcases their ability to deliver innovative, high-value infrastructure solutions in competitive markets.
FAQ: Key Questions About the Blue Owl-Led Data Center Project
1. Who is financing the data center project?
The $600 million construction loan is being financed by Societe Generale SA and arranged by Newmark Group Inc.
2. Where is the new data center located?
The data center will be built on Chirisa’s 350-acre campus near Richmond, Virginia.
3. When will the first phase of the data center be operational?
The initial 50MW phase is expected to deliver capacity in 2025, with plans to expand to 120MW.
4. Who is the primary tenant of the facility?
The data center will primarily serve CoreWeave, a cloud provider specializing in AI and machine learning workloads.
5. What is the significance of this project for the data center industry?
This project highlights the growing demand for large-scale, AI-focused infrastructure and underscores Virginia’s role as a premier location for data center development.
