Newmark Group Advises on $4 Billion Data Center JV in Pennsylvania

Newmark Group advised Blue Owl Capital, Chirisa Technology Parks, and Machine Investment Group on a $4 billion joint venture to develop an AI data center campus in Lancaster, Pennsylvania. The funding supports a long-term lease with a leading cloud computing company, positioning Lancaster as a key Mid-Atlantic hub for AI workloads. The transaction extends Blue Owl's development partnership with Chirisa Technology Parks to $20 billion, encompassing over one gigawatt of capacity across Pennsylvania and Virginia.

Lancaster, Pennsylvania — Blue Owl Capital, Chirisa Technology Parks (CTP), and Machine Investment Group (MIG) have announced a significant joint venture to develop an AI data center campus in Lancaster, Pennsylvania. The $4 billion funding, managed by Blue Owl, will support the construction and operation of the facility, positioning Lancaster as a key Mid-Atlantic hub for AI workloads. The transaction extends Blue Owl's development partnership with CTP to $20 billion, encompassing over one gigawatt of capacity across Pennsylvania and Virginia.

The Lancaster campus, to be co-developed by CTP and MIG, will have an initial IT capacity of 100MW, with the potential to scale up to 300MW. CoreWeave, a leading cloud computing company, will lease the site as part of its commitment to building future-ready AI infrastructure hubs. The facility will leverage CoreWeave's cutting-edge GPU as a service capability and CTP's expertise in AI data center development.

The new campus will be sustainably designed and constructed, reusing existing vacant industrial buildings and employing closed-loop cooling systems and magnetic levitation-based chiller systems. Emergency backup generators will be enclosed to reduce noise and fitted with Selective Catalytic Reduction systems to minimize NOx emissions. Additionally, the parties intend to fund approximately $200 million for local power grid infrastructure improvements in partnership with PPL Electric Utilities.

Marc Zahr, co-president and global head of real assets at Blue Owl, commented, "This expanded partnership with CoreWeave, CTP, and MIG marks a significant step forward in building the mission-critical infrastructure that will power the future of AI innovation. CoreWeave's cutting-edge GPU as a service capability, combined with CTP's deep expertise in AI data center development, make this a uniquely powerful alliance, all supported by Blue Owl's differentiated scale and structuring capabilities."

David Kelly, managing director North America at CTP, added, "Our Lancaster development with Blue Owl and MIG underscores our partnership's deep commitment to building sustainable, high-performance digital campuses while creating real opportunity for the communities where we operate. We believe that the deployment of AI infrastructure goes hand-in-hand with inclusive economic growth — bringing high-quality jobs, educational partnerships, and valuable opportunities for residents and families living in Pennsylvania to participate in the AI ecosystem."

Eric Rosenthal, managing partner at Machine, stated, "We are delighted to work with CTP and Blue Owl on an adaptive redevelopment that aligns with our strategy to repurpose and reimagine underutilized commercial properties in attractive locations. Pennsylvania's strategic location and robust infrastructure make it an ideal setting to deploy capital into attractive new data center developments."

Newmark Group Inc. acted as an advisor for the Lancaster Joint Venture.

References:
[1] https://www.datacenterdynamics.com/en/news/blue-owl-to-fund-build-out-of-pennsylvania-data-center-campus-set-to-host-coreweave/
[2] https://finance.yahoo.com/news/blue-owl-chirisa-technology-parks-104500084.html