{"id":1004733216,"date":"2024-10-16T04:02:57","date_gmt":"2024-10-16T12:02:57","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004733216"},"modified":"2025-01-23T02:57:29","modified_gmt":"2025-01-23T10:57:29","slug":"blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/","title":{"rendered":"$3.4B Joint Venture Funds AI Data Center Development"},"content":{"rendered":"\n

<\/p>\n\n\n

\n
\"Crusoe<\/a>
Crusoe uses modular data centers for cloud computing. Image courtesy of Crusoe<\/em><\/figcaption><\/figure><\/div>\n\n\n

Crusoe Energy Systems has formed a $3.4 billion joint venture with Blue Owl Capital and Primary Digital Infrastructure to fund the development of a 206 MW data center outside Abilene, Texas. The developer had announced the purpose-built project<\/a> taking shape at the Lancium Clean Campus in July.<\/p>\n\n\n\n

Funds managed by Blue Owl\u2019s Real Estate platform and Primary Digital Infrastructure will jointly sponsor the 998,000-square-foot, two-building data center being designed, developed and operated by Crusoe. Newmark served as advisor to the partnership. Primary Digital Infrastructure is an advisor to Crusoe.<\/p>\n\n\n\n

Data center details<\/h2>\n\n\n\n

The data center will be a build-to-suit facility capable of supporting high energy density IT applications. The project will incorporate a design to support AI workloads at an industry-leading scale, according to Crusoe. <\/p>\n\n\n\n

The design will be optimized for direct-to-chip liquid cooling and also accommodate air cooling. Once completed, the data center will be able to operate up to 100,000 GPUs on a single integrated network fabric. The site is expected to be powered by on- and off-site renewable resources, including surrounding wind developments and a possible large-scale on-site solar installation.<\/p>\n\n\n\n

A Fortune 100 hyperscale tenant has agreed to a long-term lease for the entire facility, with occupancy set to begin in the second half of 2025. Chase Lochmiller, CEO & co-founder of Crusoe, said in prepared remarks they designed the data center to enable the largest cluster of GPUs and meet the rapidly expanding demand for purpose-built facilities for a market that will increasingly be powered by AI. <\/p>\n\n\n\n

\n\n\n\n

READ ALSO:<\/strong> Getting in the Heads of Data Center Tenants<\/a><\/p>\n\n\n\n

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This is the first phase of Crusoe\u2019s development which will eventually expand to 1.2 GW capacity at the Lancium campus. The data center is expected to contribute nearly $1 billion to the local economy over the next 20 years, creating almost 100 local jobs.<\/p>\n\n\n\n

Lancium broke ground on the Abilene campus in late 2022 and is projected to spend approximately $2.4 billion in real property improvements at the site, according to Data Center Dynamics.<\/em> The 1,100-acre property currently has 200 MW of data center capacity, with 1,000 MW to be energized by 2025. <\/p>\n\n\n\n

New focus for Blue Owl<\/h2>\n\n\n\n

The Abilene project is not the only recent digital infrastructure investment by Blue Owl, an alternative asset manager with more than $192 billion in assets under management. <\/p>\n\n\n\n

In September, the firm formed a $5 billion joint venture<\/a> with Chirisa Technology Parks and PowerHouse Data Centers to develop large-scale AI\/HPC data centers for CoreWeave Inc. across the U.S. on a build-to-suit basis. The partnership expects to deploy up to $5 billion of capital.<\/p>\n\n\n\n

And, last week, the New York-based firm agreed to acquire data center investment firm IPI Partners, the parent of data center companies Stack Infrastructure and Radius DC, for $1 billion. The IPI platform is one of the largest private U.S.-based data center investors with a portfolio of 82 data centers comprising more than 2.2 GWs of capacity across the globe. <\/p>\n\n\n\n

Blue Owl said the acquisition will add about $10.5 billion in assets under management and further augment its digital infrastructure strategy. The deal is expected to close later this year or in the first quarter of 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"

Primary Digital Infrastructure is one of the sponsors of the Texas project.<\/p>\n","protected":false},"author":1068,"featured_media":1004722402,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21755,21782,21808,21825,21742,51973],"tags":[52482],"class_list":["post-1004733216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-centers","category-development","category-featured","category-finance","category-latest","category-southwest","tag-blue-owl-capital"],"acf":[],"yoast_head":"\n$3.4B Joint Venture Funds AI Data Center Development - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Crusoe Energy Systems formed a $3.4 billion joint venture with Blue Owl Capital and Primary Digital Infrastructure.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"$3.4B Joint Venture Funds AI Data Center Development\" \/>\n<meta property=\"og:description\" content=\"Crusoe Energy Systems formed a $3.4 billion joint venture with Blue Owl Capital and Primary Digital Infrastructure.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-16T12:02:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-23T10:57:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/07\/Crusoe-cloud-modular-data-center-edited.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1067\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/\",\"name\":\"$3.4B Joint Venture Funds AI Data Center Development - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/07\/Crusoe-cloud-modular-data-center-edited.jpg\",\"datePublished\":\"2024-10-16T12:02:57+00:00\",\"dateModified\":\"2025-01-23T10:57:29+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/fc5b5df1393e5023d2417bd48c2fda57\"},\"description\":\"Crusoe Energy Systems formed a $3.4 billion joint venture with Blue Owl Capital and Primary Digital Infrastructure.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blue-owl-enters-3-4b-joint-venture-for-ai-data-center-development\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/07\/Crusoe-cloud-modular-data-center-edited.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/07\/Crusoe-cloud-modular-data-center-edited.jpg\",\"width\":1067,\"height\":800,\"caption\":\"Crusoe uses modular data centers for cloud computing. 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