Powering the Data Center Boom in the US

The data center industry is growing rapidly, driven by the rise in artificial intelligence systems and increasing demand for computing power. In fact, the global market valuation for data centers is expected to more than double by 2032 to top $589 billion. Researchers predict that meeting global demand for processing power will require building at least twice the data center capacity constructed since 2000, within the next five years.

Within the US, Virginia has emerged as a premier market for data centers given its robust fiber network infrastructure and attractive tax incentives for data centers. 

A new data center project near Richmond, Virginia, is the first investment out of a new strategic joint venture between funds managed by Blue Owl Capital, Chirisa Technology Parks and PowerHouse Data Centers to support AI infrastructure.  

A new data center project near Richmond, Virginia 

The data center will generate an initial capacity of 50 megawatts, with total capacity expected to reach 120 megawatts upon completion later this year. Notably, the site will be leased solely to CoreWeave to support its AI and HPC workloads. CoreWeave is a leading cloud-computing provider for AI backed by NVIDIA and several blue-chip investors including Fidelity and Jane Street. 

The project has already begun construction and is expected to be completed in the fourth quarter of this year, with its stabilization date expected in the fourth quarter of 2026. 

Societe Generale is committed to supporting the next generation of AI-powered innovation in the US. We look forward to building upon our experience working with Blue Owl and continuing to leverage our expertise, helping build the critical infrastructure required to keep being at the forefront of AI growth, Valtin Gallani, Head of TMT Finance & Advisory, Societe Generale Americas

Societe Generale acted as Coordinating Lead Arranger, Joint Bookrunner and Documentation Agent for the project’s USD 600m debt financing. The credit facility was syndicated to a select group of banks, asset managers and credit funds active in the sector. 

Read also: The exponential growth of data centers