CyrusOne Acquires NoVA Data Center for $154M
The data center developer and operator signed a 30-year lease agreement for the property last spring
By Nick Trombola December 10, 2024 12:27 pm
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The tenant of a 265,000-square-foot data center in Northern Virginia has opted to ditch its three-decade lease and buy the facility outright.
Dallas-based data center developer and operator CyrusOne paid $154.1 million for the 10-acre property, dubbed PowerHouse ABX-1, at 21529 Beaumeade Circle in Ashburn, about 30 miles northwest of Downtown Washington, D.C., according to the Business Journals. Data center owner PowerHouse Data Centers announced in May of last year that it had secured a 30-year lease with CyrusOne for the entire two-story data center. It’s unclear why the tenant ultimately decided to buy the asset.
PowerHouse Data Centers is a joint venture between American Real Estate Partners (AREP) and Chicago-based alternative asset investor Harrison Street. The ABX-1 facility, which was delivered in late 2023, has a capacity of 60 megawatts. One megawatt has enough to juice to power roughly 1,000 homes.
Dominion Energy is meanwhile building a 300-megawatt substation on the property, which is expected to be energized by the beginning of 2025.
Representatives for CyrusOne and PowerHouse Data Centers did not immediately respond to requests for comment on the purchase.
As the region with the densest concentration of data centers in the United States, if not the world, Northern Virginia is no stranger to nine-figure deals for the facilities and their development sites. In November, Boston-based Iron Mountain paid $113.5 million to acquire a fully entitled 40-acre site in Manassas from PRP Real Estate Investment Management.
Then, naturally, there’s Amazon, which has over the course of this year paid more than $560 million for multiple data center properties. Not to be outdone, Microsoft paid an eye-watering $465 million for a 124-acre site in Prince William County, Va., in March.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
