PowerHouse Data Centers Files Permit for Major Virginia Campus Expansion
February 5, 2026
In a significant move underscoring the continued expansion of data center infrastructure beyond the traditional core of Northern Virginia, PowerHouse Data Centers has formally initiated plans to develop the second phase of its Powerhouse 95 campus in Spotsylvania County. The company, a division of American Real Estate Partners (AREP), recently filed a permit application with the U.S. Army Corps of Engineers' Norfolk District for the new construction phase.
The proposed Phase II development, located off Mills Drive along Cosner Drive in the Cosner’s Corner area outside Fredericksburg, involves the construction of three additional data center buildings and associated infrastructure. The project is expected to impact approximately 2.3 acres of wetland, a detail included in the regulatory filing. This expansion builds upon the initial phase of the campus, where ground was broken in July 2024 following a land acquisition earlier that year. The full 145-acre site is master-planned to eventually host up to seven multi-story buildings, totaling 1.75 million square feet of space and a power capacity of up to 300 megawatts (MW), with the company having previously indicated the entire campus could scale to 800MW.
Founded in 2022, PowerHouse has rapidly built a national portfolio, with a reported total development pipeline exceeding 6 gigawatts (GW) across states including Virginia, Texas, and North Carolina. The first 150MW phase of the Spotsylvania campus was previously slated for delivery in the fourth quarter of 2025. The filing signals a strategic bet on Spotsylvania County's emergence as a new data center hub. While the region south of Culpeper County is not traditionally known for such development, it is attracting major investment. Amazon is also known to be targeting several campuses in the county, alongside other proposed projects, indicating a broader geographical dispersion of data center construction in Virginia driven by high demand, land availability, and power procurement strategies. This expansion by PowerHouse contributes to the sustained growth of what is already the world's largest data center market, reinforcing Virginia's critical role in supporting global digital infrastructure and cloud computing services.
Source: datacenterdynamics
