Blue Owl Data Center JV Closes $750M Deal

The $5 billion joint venture between Blue Owl Capital managed funds, Chirisa Technology Parks and PowerHouse Data Centers has reached another milestone. The partners closed a $750 million transaction as they build facilities to support CoreWeave Inc. and other hyperscale and enterprise data center customers.

The joint venture partnership was launched in August 2024 with capacity to deploy up to $5 billion of capital for turnkey AI/HPC data center developments for CoreWeave, one of the fastest-growing AI cloud infrastructure providers, and others on a build-to-suit basis. The joint venture combines PowerHouse and CTP’s expertise in development, construction and operations with Blue Owl’s financial strength. Blue Owl is an alternative asset management firm with $273 billion in assets under management.

In December, the joint venture secured a $600 million loan for the development of CTP’s 350-acre data center campus in Chesterfield, Va., near Richmond, Va. Newmark arranged the financing through a syndicate headed by Société Générale. Construction began last year at the campus, where the initial 120 megawatt of capacity will be delivered for CoreWeave in 2025 and 2026. The new facilities are the cornerstone of CoreWeave’s rapidly scaling infrastructure footprint. Further deployments are reportedly planned for brownfield and greenfield campuses in New Jersey, Pennsylvania, Texas, Kentucky and Nevada.

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The Chesterfield campus features cutting-edge design standards, purpose-built to support dense GPU clusters and other advanced computing technologies required for large-scale AI customers. The campus utilizes CTP’s proprietary ‘direct-on-chip’ liquid cooling design. The cooling solution reduces energy consumption for environmentally responsible hyperscale data center operations. The campus also offers robust access to power, fiber and a favorable regulatory environment.

CTP also has data centers in Chicago, Seattle, Pittsburgh and Piscataway, N.J. The company currently offers more than 500,000 square feet of purpose-built data center capacity, with a pipeline exceeding 1.6 million GW under development in the U.S.

PowerHouse Data Centers is the data center division of American Real Estate Partners. It has 86 data centers underway or in planning, representing more than 23 million square feet and 6.1 GW in six major markets, including Northern Virginia. In January, PowerHouse formed a joint venture with Provident Data Centers for the multi-phase development of a 368-acre hyperscale campus in Grand Prairie, Texas. Phase One is set to generate about 500 MW of power. Upon build-out, the campus is expected to generate 1.8 GW.

More Blue Owl deals

The latest transaction for New York-based Blue Owl comes weeks after the firm closed its most recent digital infrastructure fund, Blue Owl Digital Infrastructure Fund III, with $7 billion of total capital commitments. The fund exceeded the original $4 billion target and included a mix of existing and new institutional investors. ODI III will develop, acquire and own data centers and related real property assets with a focus on large-scale, build-to-suit developments.

Last week, a Blue Owl joint venture with Crusoe and Primary Digital Infrastructure obtained $7.1 billion in construction financing for the second phase of its 1.2 GW AI data center project in Abilene, Texas. Newmark arranged the financing for the $15 billion development through a consortium led by JP Morgan. In January, Newmark brokered a $2.3 billion loan from JP Morgan for the Oracle-leased data center development. The $3.4 billion joint venture was formed in October with plans to build six new facilities, bringing the campus to eight buildings upon completion.