TECfusions Lands $300M for Virginia Data Center
TECfusions has obtained some $300 million for the development and expansion of its data center in Clarksville, Va.
The 15-year loan will fund the development’s Phase I buildout, as well as the company’s other key initiatives that include AI-ready infrastructure and sustainable power generation solutions.
The company started gathering funds for the project in January 2024. There are $160 million already allocated for construction, while the remainder will be used for the completion of the project’s Phase I.
Plans call for the development of four data halls with a combined capacity of 37.5 megawatts. The third one, dubbed C-Hall, came online in September, while the fourth one, D-Hall, is currently underway and expected to reach completion by February 2025.
The expansion of the Clarksville data center comes in response to higher capacity needs from one of its key tenants. In October, TensorWave leased 1 gigawatt of AI infrastructure capacity at the facility, marking one of the largest commitments in the sector.
READ ALSO: More Data Centers, Please!
The 22.5-acre property is at 250 Burlington Drive. TECfusions acquired the 196,000-square-foot facility with 500 kilowatts already live and immediately started upgrading it. According to the company’s website, the data center has 80 megawatts already leased and the company is looking to bring the campus to a full site capacity of 220 megawatts.
The company also recently acquired 66 acres for the expansion of the campus, that will also include some houses for people working on the development, according to Data Centre Dynamics. The same source reported that the city will provide 20,000 gallons of water and sewer per day for the project.
AI drives data center demand
AI capital expenditures in recent years amounted to more than $300 billion, with investment accelerating in 2024, according to a recent JLL Data Center Report. AI represented about 20 percent of the new data center demand in 2023 and will continue to fuel this demand going forward.
However, development is going at a faster pace than the power grid can support, especially with construction having increased in secondary markets. With vacancy levels having reached record lows, nearly all data center projects are already preleased ahead of completion, and this trend expected to continue in the next few years.
Last month, Cologix obtained significant funds to finance its upcoming data center developments. Through a mix of debt and equity, the company secured $1.5 billion for its campuses in Ashburn, Va., Columbus, Ohio, and Montréal.
The post TECfusions Lands $300M for Virginia Data Center appeared first on Commercial Property Executive.
