In August 2024, Blue Owl Capital Inc., Chirisa Technology Parks (CTP), and PowerHouse Data Centers announced a joint venture (JV) aimed at developing large-scale AI and high-performance computing (HPC) data centers for CoreWeave, a leading AI cloud-computing provider. This partnership is designed to deploy up to $5 billion in capital for turnkey AI/HPC data center developments, supporting CoreWeave and other hyperscale and enterprise data center customers. (prnewswire.com)
Initial Deployment and Expansion Plans
The first phase of this JV involves delivering 120 megawatts (MW) of capacity for CoreWeave in 2025 and 2026. This capacity will be established at CTP’s 350-acre campus near Richmond, Virginia. Future deployments are planned across various U.S. states, including New Jersey, Pennsylvania, Texas, Kentucky, and Nevada. (prnewswire.com)
Financial Milestones
In December 2024, the JV secured a $600 million construction loan for the Virginia data center project. This financing was provided by a syndicate led by Société Générale SA and arranged by Newmark Group Inc. The loan will fund the development of a 50 MW build-to-suit data center, with initial capacity expected in 2025. (bloomberg.com)
Strategic Significance
This JV represents a significant investment in the rapidly growing AI and HPC data center market. By leveraging Blue Owl’s financial expertise, CTP’s development capabilities, and PowerHouse’s real estate and power procurement skills, the partnership aims to rapidly expand AI/HPC infrastructure across the U.S., addressing the increasing demand for robust, efficient, and scalable data center solutions. (prnewswire.com)
CoreWeave’s Role
CoreWeave, founded in 2017, specializes in providing cloud-based GPU infrastructure to AI developers and enterprises. The company has experienced significant growth, raising over $12.7 billion from debt and equity investors in the past 18 months. This includes a $7.5 billion debt financing facility led by Blackstone and Magnetar in May 2024, one of the largest private credit financings in history. (prnewswire.com)
Conclusion
The collaboration between Blue Owl Capital, Chirisa Technology Parks, PowerHouse Data Centers, and CoreWeave marks a pivotal development in the AI and HPC data center sector. By combining financial resources, development expertise, and strategic planning, this JV is poised to meet the growing infrastructure needs of AI and enterprise clients, contributing to the advancement of digital infrastructure in the United States.
