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PowerHouse joins data center rush in region

PowerHouse Data Centers to develop a 900,000-square-foot shell facility on 49 acres at Tahoe Reno Industrial Center

Northern Nevada’s emergence as a haven for data center development recently took another step forward with the announcement from PowerHouse Data Centers to develop a 900,000-square-foot shell facility on 49 acres at Tahoe Reno Industrial Center.

PowerHouse Data Centers, a fully-owned subsidiary of American Real Estate Partners of McLean, Virginia, expects to bring the 65-megawatt data center online in late 2025, said Karen Petersburg, PowerHouse’s vice president of data center development and construction.

“We just love Northern Nevada for a lot of reasons,” Petersburg said. “It's become somewhat of a mecca of data center companies and operators that have been there, are going there, or are already there now. It really drew us for that reason, but also because of the business-friendly aspects of the area. It’s very business friendly with the tax incentives, and they have made it very easy for developers with quick permitting.”

PowerHouse Reno is one of the company’s first ventures outside of Virginia, where PowerHouse is developing more than 700 megawatts of powered data center shell space in Northern Virginia’s Data Center Alley at Ashburn. PowerHouse Reno is located at the junction of Britain Drive and Waltham Way and consists of three two-story buildings of 300,000 square feet, with each building a mirror image of the others. A dedicated substation will be constructed onsite and connected to the NV Energy power grid, Petersburg said.

General engineering contractor F&P Construction will perform site work and mass grading once the project is finalized, Petersburg said. Tectonics Design Group has been instrumental in helping PowerHouse executives understand the region’s unique topography and site challenges, she added. Primary sitework challenges include extensive blasting to create level spaces for vertical development.

“Tectonics and F&P have been a great team,” Petersburg said. “They’ve been able to really help us work through the design and layout of the buildings, knowing where the grading slopes are the steepest, and understanding the site constraints from a square-footage factor because the topo is just so rocky and all over the place. They’ve been phenomenal.”

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