PowerHouse, a leading US-based data center developer, is reportedly eyeing a significant new project in south-central Pennsylvania. The company, a division of American Real Estate Partners (AREP), is considering a 700-acre site in Middlesex Township, Cumberland County, for the development of a state-of-the-art hyperscale data center campus.
What Is PowerHouse’s Vision for the Pennsylvania Campus?
PowerHouse’s proposed campus could feature up to 18 buildings, totaling an impressive 5 million square feet (464,515 square meters) of space. This ambitious development aims to accommodate the growing demand for data processing, cloud computing, and other tech services that are essential to powering modern businesses and innovation.
The project is strategically positioned in a region with increasing demand for data center infrastructure, offering proximity to major metropolitan areas and key data traffic hubs. The hyperscale campus is expected to support large-scale cloud providers and other high-performance computing (HPC) clients.
Location: Why Middlesex Township?
The site, located off Country Club Road, has previously been approved for two residential developments that never came to fruition. Originally, the area was slated for nearly 1,000 homes. However, PowerHouse’s new plans align with the region’s growing need for technological infrastructure, capitalizing on the land’s accessibility and zoning potential.
Middlesex Township officials are currently revising their zoning regulations to better accommodate data center developments. The revised zoning ordinance is expected to be finalized in 2025, which will allow PowerHouse to submit its official plans once in place. The company has reportedly secured an option to acquire the land.
What’s Next for PowerHouse’s Expansion Plans?
PowerHouse is focused on expanding its data center footprint in key US locations, particularly in regions like Northern Virginia, Texas, and North Carolina. The company is currently working on approximately 5.9GW of capacity across these markets, with further developments planned for various states, including Pennsylvania.
In 2024, PowerHouse formed a $5 billion joint venture with Blue Owl Capital and Chirisa Technology Parks. This venture aims to develop AI and HPC data centers across multiple states, including New Jersey, Texas, and Nevada, with a focus on build-to-suit campuses for hyperscale and enterprise customers such as CoreWeave.
What Does PowerHouse’s Expansion Mean for the Data Center Market?
As the demand for cloud services, data storage, and computational power continues to grow, developments like PowerHouse’s proposed campus are essential to meeting these needs. The hyperscale data center market is expected to see significant investment in the coming years, driven by the increasing reliance on data-intensive technologies like AI, big data, and the Internet of Things (IoT).
PowerHouse’s project in Pennsylvania represents a critical step in the company’s long-term strategy to dominate the hyperscale data center landscape. By targeting underserved regions and aligning with the needs of global cloud providers, PowerHouse is positioning itself as a key player in the rapidly evolving data center industry.
FAQ Section
1. What is PowerHouse’s proposed data center campus in Pennsylvania?
PowerHouse is planning a large-scale hyperscale data center campus in Middlesex Township, Cumberland County, on a 700-acre site. The campus could feature 18 buildings and total 5 million square feet of space.
2. When will the zoning for the proposed data center campus be finalized?
Middlesex Township’s zoning ordinance for data centers is expected to be finalized in 2025, after which PowerHouse can officially submit its plans.
3. What is the scale of PowerHouse’s data center operations?
PowerHouse currently has approximately 5.9GW of capacity either planned or under construction in several US states, including Northern Virginia, Texas, and North Carolina.
4. How does PowerHouse’s expansion impact the data center market?
The expansion helps meet the growing demand for cloud computing, AI, and HPC services. It positions PowerHouse as a major player in the rapidly expanding hyperscale data center industry.
5. What is the significance of the $5 billion joint venture by PowerHouse?
The joint venture with Blue Owl Capital and Chirisa Technology Parks aims to develop AI and HPC data centers across the US, further expanding PowerHouse’s footprint in key markets.