A Colorado data center developer last week announced its recent purchase, for an undisclosed amount, of 120 acres in Culpeper County from a Florida real estate developer to take over an already approved, estimated $2 billion construction project in the Culpeper Technology Zone.
Local officials last year approved the 1.4 million square feet data center campus in an initial application submitted by Cielo Digital Infrastructure, a new Orlando firm owned by Texas-based Arroyo Investors.
Cielo purchased the four Nalles Mill Road parcels in May 2023 for $18.75 million from two owners: the Fishbach family and Kenneth Dowder/Eastern View, according to online tax records. The selling price was around $5 million more than the assessed value for the land.
The new owner is Denver-based EdgeCore Digital Infrastructure, a wholesale data center developer, owner and operator, according to a business release.
A company spokeswoman declined to disclose financial details of the purchase agreement.
“We can share that EdgeCore purchased this land due to its proximity to Ashburn and the available power and dense network interconnectivity, which will allow us to support hyperscalers priorities, especially around the density requirements of AI,” the spokeswoman said.
“Cielo’s role in the project is now complete, and EdgeCore is excited to use this land to build its data center campus specially designed for density.”
According to the county assessors office, the land was sold in May, but the purchase price was not listed on the deed and is not required to be listed.
The board of supervisors in December greenlighted Cielo’s request for the data center project by a 5-2 vote, rezoning the property along Nalles Mill Road, fronting U.S. Route 29 at Braggs Corner, from Rural Area to Light Industrial.
The land is in the Culpeper Technology Zone, eligible for tax incentives.
The new data center project owner, in a release last Thursday, stated it plans to develop a “data center campus capable of initially supporting 216MW of critical IT load with the potential to support up to 432MW.”
Initial power delivery is expected in early 2028 through Rappahannock Electric Cooperative, according to the company. Town of Culpeper utilities will provide water and sewer at the site.
“Home to the NAP of the Capital Region and located just 60 miles from Ashburn, Culpeper has gained momentum as a data center market due to the establishment of the Culpeper Technology Zone, a 690-acre site designated to host data centers, public works utilities and STEM-based educational initiatives,” according to the EdgeCore Digital Infrastructure release.
Demand for land capable of accommodating 300-plus megawatt data center campuses has skyrocketed in the wake of AI and cloud applications, said Michael Shaw, Vice President of Land Acquisition, EdgeCore Digital Infrastructure.
“EdgeCore’s new campus is an excellent option for our hyperscale customers due to its proximity to Ashburn and the near-term availability of power,” he said.
According to the business release, “To ensure EdgeCore’s campus makes the most efficient use of water possible, the company will employ a close-looped air-cooled system in Culpeper that uses very little water to cool its facilities, carrying a benchmark water usage effectiveness rating below .01 L/kWh.”
National Community Engagement Vice President Bill Jabjiniak said EdgeCore understands and supports the “community first” approach established for the CTZ.
“We look forward to helping generate economic growth and jobs for Culpeper County while remaining mindful of topics that are important to the community, such as our minimal impact on local water supplies,” he said.
Last Thursday’s announcement for the Culpeper project was EdgeCore’s fifth active market count, the company said, including developments in Ashburn, Silicon Valley, Phoenix and Reno, all of which have been designed to accommodate data center campuses for single hyperscale tenants.
“EdgeCore Digital Infrastructure serves the world’s largest cloud and internet companies with both ready-for-occupancy and build-to-suit data center campuses that are designed for density,” according to the release. “Privately held and backed by committed equity, EdgeCore enables hyperscale customer requirements by proactively investing in regions that provide the land and power necessary to support and scale AI and cloud technology.”
As part of its rezoning approval in December, Cielo agreed to a range of “proffers,” including that the campus would be developed to provided renderings and the rezoning plan. The new owner will follow that plan and the previous approval, said County Administrator John Egertson.
“All the proffers are binding. I expect that the new owner will be doing exactly what was presented in the rezoning case,” he said.
Included in the proffers are a one-time payment of up to $392,000 to the Culpeper County Volunteer Fire and Rescue Association (.28 cents per square foot), a one-time donation of $25,000 to Culpeper County FFA and 4-H club, $100,000 for the County’s Perpetual Development Rights program, a one-time donation of $25,000 to Germanna Community College and $25,000 for the Culpeper Technical Education Center.
According to the Cielo proffers, noise levels will not exceed 60 dBA at the property line for normal operation and 70 dBA for emergency equipment with exclusion of a guard house. Principal access to the site will be an entrance/exit along Route 667/Nalles Mill Road. Per the proffers, the owner will escrow funds totaling up to $300,000 for area road improvements.
The data center campus development is a more than $2 billion investment and will create 30 to 50 high-paying technical jobs, according to the proffers.
