, 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.
Penzance breaks ground on fully preleased Chantilly Premier data center after securing more than $100 million in construction financing
Developer Penzance has started construction on a new three-story data center in northern Virginia after securing over $100 million in construction debt from a global investor based in Vancouver. The project, known as Chantilly Premier, is already fully leased, although the identity of the tenant has not been publicly disclosed.
Key project facts
The site sits in Fairfax County at 4151 Auto Park Circle, roughly ten minutes from Dulles International Airport on a larger 79-acre parcel with about 12 acres slated for development. Under county approvals, Penzance may build a three-story data center with roughly 236,000 square feet of floor area, a parking area with 52 spaces (including five accessible spots), and a maximum permitted height of 110 feet for the data center option. Earlier company filings and permitting documents also referenced a three-story, approximately 241,000-square-foot LEED Silver build-to-suit layout.
Financing and advisory
The construction loan was provided by the Vancouver-based global property investor and developer and arranged with the help of a nationwide debt advisory team. A commercial real estate advisory team based in the Washington, D.C., market acted as exclusive advisor in placing the financing.
Timing and lease status
Project timelines in public filings show a target delivery in the first half of 2027, assuming design and permitting milestones proceed on schedule. The building is being delivered as a powered shell and is reported as fully preleased; however, Penzance has not identified the future user publicly and a company spokesperson indicated that future users are not being named at this time.
Local approvals and community reaction
Fairfax County supervisors approved rezoning for the site in January 2024 by an 8‑1 vote, clearing the way for either a large warehouse or a data center option. The approval happened despite community concerns about building height, traffic, noise and environmental effects. The approved plan allows the data center option to rise taller than a standard warehouse and reserves a compact development footprint on the portion of the property being built.
Nearby holdings and local ties
In a related move this year, Penzance expanded its local industrial holdings by acquiring a six-building, roughly 212,000-square-foot industrial portfolio in nearby Manassas for $55 million. Those properties house warehouse tenants that support the regional data center industry.
Market context
Northern Virginia remains one of the most active data center regions in the world, with very low vacancy and extensive development pipelines. Recent market reports show strong first-half net absorption, thousands of megawatts under construction, and a total inventory that measures in the thousands of megawatts, producing a market-wide vacancy below 1 percent. High preleasing activity for single-tenant buildings is pushing large occupiers to compete early for contiguous capacity slated for delivery in 2027 and beyond. Developers continue to search for land parcels with ready access to high-voltage power, fiber connectivity and public utilities.
Infrastructure and policy considerations
A state-level audit and review of the industry highlights that rapid data center growth is straining existing electric capacity and could require major transmission and generation upgrades. The same review notes that while data center projects create construction jobs and local tax receipts, most long-term operations jobs are limited and backup power, water use and community impacts remain policy concerns. Local governments in the region have tightened rules in response to those pressures.
Why this matters
The Chantilly Premier project is notable for combining a large, preleased powered shell with significant construction financing from an institutional investor focused on alternative real estate sectors. The deal reflects the ongoing demand for dedicated data capacity in the region and highlights the ways financiers, developers and local governments are adapting to a fast-moving market where buildable land, transmission access and permitting timelines are key constraints.
Next steps
Construction is underway and project stakeholders expect to move through core permitting, utility coordination and building shell completion over the next two years. Delivery is anticipated in the first half of 2027 if the project remains on schedule.
Frequently Asked Questions (FAQ)
Q: Who is financing the Chantilly Premier construction?
A: Construction financing exceeding $100 million was provided by a Vancouver-based global property investor and developer that invests in industrial and alternative assets, including data centers.
Q: Is the data center already leased?
A: Yes. Public filings and project materials list the building as fully leased, but the tenant’s identity has not been publicly disclosed.
Q: What is the expected size and type of the building?
A: The approved site plan indicates a three-story data center of about 236,000 square feet, delivered as a powered shell. Earlier project materials referenced a similar three-story, ~241,000-square-foot LEED Silver build-to-suit layout.
Q: When is the project expected to be finished?
A: Anticipated delivery is in the first half of 2027, assuming design, permitting and utility coordination proceed on schedule.
Q: Where is the site located?
A: The property is in Fairfax County on Auto Park Circle, approximately ten minutes from Dulles International Airport. The broader site totals 79 acres with about 12 acres designated for this development.
Q: Were there any local objections to the project?
A: Yes. Local residents raised concerns about building height, traffic, noise and environmental impacts during the rezoning process, which the county approved by an 8‑1 vote.
Key project features at a glance
| Feature | Detail |
|---|---|
| Developer | Penzance |
| Project name | Chantilly Premier |
| Location | 4151 Auto Park Circle, Fairfax County, ~10 minutes from Dulles Airport |
| Site size | 79 acres (12 acres developable for this project) |
| Building | Three-story data center, ~236,000 square feet (site plan) |
| Lease status | Fully preleased (tenant undisclosed) |
| Financing | More than $100 million in construction debt from a Vancouver-based global investor |
| Delivery target | First half of 2027 (subject to permitting and design) |
| Site plan notes | ~236,000 sq ft floor area; 52 parking spaces (5 accessible); data center height up to 110 ft |
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 FL News
FLORIDA STAFF WRITER The FLORIDA STAFF WRITER represents the experienced team at constructionflnews.com, your go-to source for actionable local news and information in Florida 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 Florida Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of Florida and the Florida Home Builders Association, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Shutts & Bowen LLP. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
