, 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.
Developer Breaks Ground on Fully Preleased Chantilly Data Center, Secures Over $100M in Construction Financing
Penzance has started construction on a fully preleased powered shell data center in Chantilly, Northern Virginia after securing more than $100 million in construction financing from QuadReal Property Group. The project sits on a 79-acre site with approximately 12 developable acres and is positioned close to major infrastructure and the region’s air hub.
What’s happening now (top-line)
Groundbreaking has begun for Chantilly Premier, a three-story data center building that the developer says is fully leased. The lender is QuadReal Property Group, a Vancouver-based global real estate investor that includes data centers in its alternatives portfolio. A commercial financing advisory team from Cushman & Wakefield represented the borrower in arranging the loan.
Project details and timing
The approved county site plan indicates the new building will contain roughly 236,000 square feet of floor area and sit on the roughly 12-acre development parcel at the site address reported as 4151 Auto Park Circle, adjacent to a local auto park south of Route 50. Earlier company materials described a three-story, roughly 241,000-square-foot build-to-suit design targeting LEED Silver certification; the two figures reflect slightly different design and planning sources.
The developer’s public project materials list a delivery window in the first half of 2027, assuming design and permitting follow the expected schedule. The financing and ground work aim to keep that timetable on track. The tenant that preleased the facility has not been publicly identified.
Site, zoning and approvals
Fairfax County approved rezoning for the site in an 8–1 vote in January 2024, allowing either a warehouse or a data center build. Under the approval, a data center option could reach a maximum height of 110 feet. The county staff-approved site plan includes a parking lot with 52 spaces, five of which are accessible.
The site’s reported advantages include strong fiber and power connectivity and proximity—about 10 minutes—to the local international airport, factors that help explain why the building was preleased well before delivery.
Financing and advisory
QuadReal provided the construction financing. Cushman & Wakefield served as exclusive advisor to the borrower, with its Equity, Debt & Structured Finance team based in the regional office advising on the deal. The financing was characterized by the advisory team as indicative of strong market demand for high-quality, preleased data center projects.
Local and regional market context
Northern Virginia remains a dominant data center market with very low vacancy and heavy preleasing activity for new capacity. Recent industry reports show significant net absorption and large pipelines of capacity under construction, with overall inventory measured in the thousands of megawatts and a market-wide vacancy rate near one percent or below. That tight supply is making it challenging for occupiers to secure large contiguous capacity in existing colocation hubs and is driving sustained demand for single-tenant, build-to-suit facilities.
State-level reviews highlighted that the region holds a sizeable share of global data center capacity and that continued expansion raises policy questions about electricity supply, backup power emissions, water use and local impacts such as noise and building height near residential areas. Local governments have been adjusting regulations and approvals in response to public concerns and the pace of development.
Related local holdings and context
The developer recently expanded its local footprint by acquiring a six-building industrial portfolio in the region for $55 million. Those industrial properties supply warehouse space to firms that support data center operations, illustrating how developers are integrating logistics and data infrastructure strategies in the same markets.
What this means
The Chantilly Premier project is an example of continued investor appetite for preleased, single-tenant data center real estate in a constrained market. The combination of secured construction financing, a prelease commitment, and a well-connected site positions the project to meet a near-term delivery target, while also underscoring ongoing planning and policy pressures around energy, land use and community impacts as the data center sector continues to expand.
Frequently Asked Questions
Q: Who is developing the Chantilly data center?
A: The project is being developed by Penzance.
Q: Who provided construction financing?
A: Construction financing was provided by QuadReal Property Group in an arrangement exceeding $100 million.
Q: Is the building leased?
A: The developer reports the building is fully leased; the tenant has not been publicly identified.
Q: What is the expected size and delivery timeline?
A: Site plan documents show about 236,000 square feet of floor area across three stories. Company materials list a delivery window in the first half of 2027, assuming design and permitting milestones are met.
Q: Where is the site and what are its key attributes?
A: The site is in Fairfax County, near a major airport and adjacent to a local auto park at 4151 Auto Park Circle. The full parcel is 79 acres with about 12 developable acres. The location offers strong fiber and power infrastructure access.
Q: Were there any local objections or approvals?
A: The county board approved rezoning by an 8–1 vote in January 2024 despite objections from some neighbors concerned about height, traffic, noise and environmental impacts.
Q: How does this project fit into regional data center trends?
A: The project reflects a tight regional market with heavy preleasing, limited vacancy, and robust pipelines of new capacity—conditions that favor preleased, single-tenant facilities.
{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “Who is developing the Chantilly data center?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The project is being developed by Penzance.”
}
},
{
“@type”: “Question”,
“name”: “Who provided construction financing?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Construction financing was provided by QuadReal Property Group in an arrangement exceeding $100 million.”
}
},
{
“@type”: “Question”,
“name”: “Is the building leased?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The developer reports the building is fully leased; the tenant has not been publicly identified.”
}
},
{
“@type”: “Question”,
“name”: “What is the expected size and delivery timeline?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Site plan documents show about 236,000 square feet of floor area across three stories, with a delivery window in the first half of 2027, assuming design and permitting milestones are met.”
}
},
{
“@type”: “Question”,
“name”: “Where is the site and what are its key attributes?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “The site is in Fairfax County at 4151 Auto Park Circle, near a major airport. The full parcel totals 79 acres with approximately 12 developable acres and offers strong fiber and power connectivity.”
}
}
]
}
Key Project Features
| Feature | Detail |
|---|---|
| Developer | Penzance |
| Project name | Chantilly Premier |
| Lender | QuadReal Property Group |
| Financing | More than $100 million in construction financing |
| Location | 4151 Auto Park Circle, Fairfax County, Chantilly, Northern Virginia |
| Site size | 79 acres total; ~12 developable acres |
| Building | Three stories; ~236,000 sq ft (site plan) / ~241,000 sq ft (earlier design note) |
| Lease status | Fully leased (tenant not publicly identified) |
| Target delivery | First half of 2027 |
| Zoning/approval | Rezoned in Jan 2024; county allowed up to 110 ft height for data center option |
| Parking | 52 spaces (including 5 accessible) per approved site plan |
| Certification | Earlier design referenced LEED Silver |
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
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
