Data center developer to build $3B campus in Caroline

CleanArc Data Centers is building a $3 billion data center campus in Caroline County, Gov. Glenn Youngkin announced Thursday.

Located in Ruther Glen, the data center campus is expected to create 50 jobs once it’s operating at its full 900-megawatt capacity.

“Virginia is the data center capital of the world, and I am thrilled that CleanArc has selected Caroline County as the site to invest $3 billion for their newest data center campus,” Youngkin said in a statement, describing the CleanArc project as “the largest announced economic investment in the history of Caroline County.”

CleanArc, a Las Vegas-based hyperscale data center developer and operator, held a groundbreaking for the project, dubbed VA1, on Thursday. The company’s data center campus in Virginia will be its first, according to prior news releases.

“Today marks an important milestone for CleanArc Data Centers and Northern Virginia,” CleanArc founder and CEO James Trout said in a statement. “This new leading-edge campus reflects our commitment to delivering reliable, efficient and sustainable data center solutions while supporting the local economy and workforce.”

The facility’s first 300 megawatts of grid capacity is expected to come online in the first quarter of 2027, with the second 300-megawatt increment following in 2030. The final  300 megawatts are expected to be online in the 2033-2035 window.

CleanArc will use modular data center design and off-site manufacturing to deliver pre-engineered systems to the Caroline County site.

New York private equity firm Snowhawk is a majority investor in CleanArc, and Nuveen — the investment manager for TIAA — and Cleveland-based real estate investment advisory firm Townsend Group are minority investors.

Brian McMullen, Snowhawk managing partner and co-founder, said in a statement: “We are thrilled to support this project, which represents a significant investment in the future of digital infrastructure and underscores our commitment to building advanced, sustainable facilities that empower businesses and communities.”

VA1 is expected to generate about $13 million in annual local tax revenue for Caroline County, about 17% of the county’s current general fund, according to a news release from CleanArc. The company is eligible for the state’s data center sales and use tax exemptions on qualifying computer equipment and enabling software.

Founded in 2022, CleanArc describes itself as a “sustainability-focused data center development and operation solutions” provider focusing on hyperscale projects. Along with its Las Vegas office, CleanArc has offices in Reston and in Arlington, Texas.

The VA1 campus will use closed-loop water systems to reduce usage and design features to reduce noise and light pollution, according to CleanArc.