, 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 after securing more than $100 million in construction financing
Penzance has started construction on a new data center in Fairfax County, Northern Virginia, and has lined up more than $100 million in construction financing from QuadReal Property Group. The project, known as Chantilly Premier, is being delivered as a powered shell and is reported to be fully preleased to an undisclosed tenant.
What was announced
The project has entered the construction phase after financing was secured. The lender is QuadReal, a global real estate investment and development company based in Vancouver, Canada. Advisory and placement of the loan were handled exclusively by a major commercial real estate advisory team in Washington, D.C., whose representatives worked on behalf of the developer.
Project basics and timeline
Chantilly Premier is planned as a three-story data center on a 79-acre site, with roughly 12 acres of that area developed for the building. The approved site plan indicates the data center will contain about 236,000 square feet of floor space and include a parking lot with 52 spaces, five of which are accessible. Under local approvals, the developer had the option to build a smaller warehouse or a larger data center; the data center option allows a maximum structure height of 110 feet.
Public materials for the project list the site address as 4151 Auto Park Circle, adjacent to the Chantilly Auto Park south of Route 50 and about 10 minutes from Dulles International Airport. The developer expects to deliver the completed building in the first half of 2027, assuming design, permitting and construction follow the current schedule.
Lease status and tenant details
The building is being built as a powered shell and is reported to be fully preleased. The tenant has not been publicly identified. Earlier project descriptions referenced a build-to-suit lease with an undisclosed hyperscale tenant for a three-story, roughly 241,000-square-foot LEED Silver data center, though the formal project documents show the eventual floor space at about 236,000 square feet.
Site advantages and approvals
Local filings emphasize the site’s strong access to fiber and power infrastructure as major advantages. The Fairfax County Board of Supervisors approved rezoning for industrial use earlier in the year, enabling either a large warehouse or a multi-story data center at the address. The rezoning vote moved forward despite objections from some residents who raised concerns over building height, traffic, noise and environmental impacts.
Financing and market context
QuadReal’s financing aligns with a strategy that includes alternative property types such as data centers. The lender described the deal as consistent with its U.S. debt investment goals and its conviction in alternative real estate sectors. The developer worked with an equity, debt and structured finance team based in Washington, D.C. to secure the loan.
Regionally, Northern Virginia remains a tight market for data center space, with low vacancy and substantial demand for long-term capacity. Market figures show high net absorption and a large amount of megawatts under construction and in planning, with functional vacancy rates reported below 1 percent. Those trends have pushed developers to seek sites with strong transmission access, public utilities and quick entitlement.
Broader policy and infrastructure signals
A state-level audit and review commission recently documented the scale of the data center industry in Virginia, noting the state hosts more data center sites and capacity than any other U.S. state. The review found that data centers contribute construction jobs and local tax revenue but also raise concerns about future power demand, backup generator emissions, water use and noise near residential areas. The commission’s findings add context to recent local regulatory changes and several proposed state bills addressing data center impacts, many of which did not advance during the last legislative session.
Nearby activity and related holdings
Separately, the developer recently acquired a six-building industrial portfolio in Manassas, Virginia, totaling about 212,000 square feet for $55 million. Those industrial properties house warehouse tenants that supply and support the regional data center industry.
What comes next
The project will move through detailed design, final permitting and construction. With a fully preleased status and secured construction debt, the developer is positioned to progress on schedule toward the anticipated first-half 2027 delivery window, assuming no major permitting or construction delays.
FAQ
What is Chantilly Premier?
Chantilly Premier is a planned three-story data center being developed in Fairfax County, Northern Virginia, on a 79-acre site with roughly 12 acres for the building footprint.
Who is financing the project?
The construction financing was provided by QuadReal Property Group. The developer secured more than $100 million in construction debt.
Is the building leased?
The building is reported to be fully preleased to an undisclosed tenant. Public materials indicate a build-to-suit agreement with a large cloud or hyperscale operator, though the tenant’s identity has not been released.
When will the data center be completed?
The developer anticipates delivering the building in the first half of 2027, contingent on permitting and construction timing.
What are the site advantages?
The site is near major fiber and power infrastructure, close to Dulles International Airport, and has local approvals in place for a multi-story data center under current rezoning.
Are there community or environmental concerns?
Local residents raised concerns during rezoning about height, traffic, noise and environmental impacts. State-level reviews have also highlighted broader issues around power demand, backup generators, water use and neighborhood impacts tied to data center growth.
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Key project features
| Feature | Detail |
|---|---|
| Developer | Penzance |
| Project name | Chantilly Premier |
| Location | 4151 Auto Park Circle, Fairfax County, VA (near Dulles Airport) |
| Site size | 79 acres total; ~12 acres developable for the building |
| Building | Three stories; approximately 236,000 square feet |
| Lease status | Fully preleased; tenant undisclosed |
| Financing | More than $100 million construction debt from QuadReal Property Group |
| Permits and approvals | Rezoned for industrial use; site plan approved by county staff |
| Expected delivery | First half of 2027 (target) |
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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