, October 13, 2025
News Summary
Developer Penzance has begun construction on Chantilly Premier, a three-story, roughly 236,000-square-foot data center in Fairfax County after securing over $100 million in construction financing from a Vancouver-based institutional investor. The powered-shell facility sits on a larger 79-acre parcel, with about 12 acres allocated for this build and is already fully preleased to an undisclosed tenant. Fairfax County approved rezoning amid community concerns, and delivery is targeted for the first half of 2027 pending permitting and utility coordination. The project underscores ongoing demand for data center capacity in northern Virginia and growing investor interest in the sector.
Construction Begins on Fully Preleased Chantilly Premier Data Center After $100M+ Financing
Developer Penzance has broken ground on a new data center in Northern Virginia and secured more than $100 million in construction financing from QuadReal Property Group. The project, called Chantilly Premier, is being built as a fully preleased powered shell on a site in Fairfax County near Dulles International Airport. Project documents and public filings put delivery in the first half of 2027.
What the deal covers
The site totals 79 acres, with about 12 acres set aside as developable for the data center. The planned building is a three-story facility with roughly 236,000 square feet of floor space according to county-approved site plans. The approved plan also shows a parking lot with 52 spaces, including five accessible spots. Under county zoning, the site was cleared for industrial use and the rezoning permitted a taller option for a data center up to 110 feet.
Financing and advisory teams
Financing was provided by QuadReal Property Group, a global real estate investor and developer based in Vancouver. The loan was arranged with the exclusive help of Cushman & Wakefield, whose Washington, D.C. debt and structured finance team represented the borrower. The Cushman team on the deal included senior regional bankers from the firm’s D.C. office.
Lease and tenant status
The building is being developed as a build-to-suit data center and has been reported as fully leased, although the future user remains undisclosed in public reports. Earlier project announcements referenced a build-to-suit lease with an undisclosed hyperscaler for a three-story, roughly 241,000-square-foot LEED Silver data center; county plans list the final building around 236,000 square feet.
Timeline and construction outlook
Project timing depends on final design and permitting work. If permitting and design milestones proceed on schedule, construction completion was originally projected for the first or second quarter of 2027. Developer materials and the project website cite a delivery window in the first half of 2027.
Location and site advantages
The site address is listed near Auto Park Circle in Chantilly, south of Route 50, and is about 10 minutes from Dulles International Airport. Public filings and local planning notes highlight the site’s strong connectivity to fiber and high-voltage power infrastructure as key competitive advantages for data center use.
Local approvals and public response
Fairfax County supervisors approved the rezoning for industrial use in an 8-1 vote earlier in the year. The vote followed resident concerns over building height, traffic, noise and environmental impacts. The county had previously adopted tighter regulations addressing data center siting and related community impacts.
Market context: Northern Virginia demand and constraints
The Chantilly Premier project launches into one of the busiest data center markets in the world. Recent market figures show very low vacancy rates, high preleasing activity and hundreds to thousands of megawatts either under construction or planned. That environment has driven strong appetite among lenders and investors for high-quality, preleased assets backed by experienced sponsors, and it has also made it harder for occupiers to find large, contiguous capacity in existing or planned facilities.
Penzance activity in the region
Penzance recently expanded its local holdings with the acquisition of a six-building industrial portfolio in Manassas for about $55 million. Those properties include industrial parks that serve warehouse tenants supporting the regional data center industry.
Regulatory and grid considerations
State-level studies and regulatory reviews have highlighted that continued data center growth raises questions about power supply, reliance on diesel backup generators, water usage, noise and impacts on local infrastructure. Policymakers, utilities and developers have been discussing how to meet growing power demand while protecting grid reliability and controlling costs for other electricity users.
With financing in place and site approvals secured, Penzance has started construction on Chantilly Premier. The project will be watched closely for how it meets the market’s demand for capacity and how it fits into local plans for managing data center growth and community impacts.
Frequently Asked Questions
What is Chantilly Premier?
Chantilly Premier is a three-story data center project being developed by Penzance on a 79-acre site in Fairfax County, with about 12 acres allocated for the building footprint.
Who is financing construction?
Construction financing was provided by QuadReal Property Group for more than $100 million.
Is the building leased?
Yes. Public reports describe the facility as fully preleased, though the tenant or tenants have not been publicly identified.
How big will the data center be?
County site plans indicate roughly 236,000 square feet of floor space in a three-story building. Earlier project material referenced a similar figure of about 241,000 square feet.
When is the expected delivery?
Developer materials and reporting place anticipated delivery in the first half of 2027, assuming design and permitting proceed on schedule.
Where is the site located?
The site is in Chantilly, Fairfax County, near Auto Park Circle and about 10 minutes from Dulles International Airport. It is adjacent to an established auto park and major roadways.
Were there any local objections?
The county rezoned the site for industrial use following an 8-1 vote. Local residents raised concerns about height, traffic, noise and environmental effects during the rezoning process.
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Key Project Features
| Feature | Details |
|---|---|
| Project name | Chantilly Premier |
| Developer | Penzance |
| Financing | QuadReal Property Group — more than $100 million |
| Advisor | Cushman & Wakefield (exclusive advisor) |
| Site address | Near Auto Park Circle, Chantilly, Fairfax County (10 minutes from Dulles) |
| Total site area | 79 acres |
| Developable area | Approximately 12 acres |
| Building size | About 236,000 square feet; three stories |
| Parking | 52 spaces (5 accessible) |
| Zoning | Rezoned for industrial use; data-center height option up to 110 feet |
| Prelease status | Fully preleased (tenant undisclosed) |
| Expected delivery | First half of 2027 |
| Site advantages | Proximity to fiber and high-voltage power infrastructure |
Deeper Dive: News & Info About This Topic
Additional Resources
- FFXnow: Penzance breaks ground on Chantilly Premier data center
- Wikipedia: Data center
- WTOP: Northern Virginia data centers have topped 4,900 megawatts
- Google Search: Northern Virginia data centers 4900 megawatts
- Virginia Mercury: VA could show how to manage data center growth — stalling legislation
- Google Scholar: Virginia data center growth
- Northern Virginia Magazine: Inside the divisive debate surrounding Northern Virginia’s data centers
- Encyclopedia Britannica: data center
- NBC Washington: Judge blocks data center project planned in Prince William County
- Google News: Prince William County data center judge blocks
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