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Data Center View - January 24, 2025 - KKR and PSP acquire $2.8 billion stake in two AEP transmission companies

Data Center View - January 24, 2025 - KKR and PSP acquire $2.8 billion stake in two AEP transmission companies

KKR and PSP acquire $2.8 billion stake. Partnership to develop 800K SF data center campus. Cipher Mining nearing completion of $7 million project. Data center planned in Rome, GA. Newmark arranges $600 million in financing. Two new data center deals.

Matt H
January 24, 2025

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NEWS ROUNDUP

ACQUISITION: KKR and PSP acquire $2.8 billion stake in two AEP transmission companies. KKR and PSP Investments have acquired a 19.9% stake in two American Electric Power’s (AEP) transmission subsidiaries for $2.82 billion. The investment will fund critical infrastructure development to address surging electricity demand, driven largely by the rapid growth of data centers in AEP's key service territories of Ohio, Indiana, and Michigan. AEP President and CEO Bill Fehrman emphasized the deal's importance, stating, "This transaction allows AEP to efficiently finance a growing segment of our business and enhances our ability to serve growing customer demand and provide reliable service to our customers." KKR Managing Director Kathleen Lawler remarked, "The simplicity and stability of the assets, coupled with the robust demand for electricity, make AEP’s transmission assets an ideal investment for KKR."

PARTNERSHIP: Lincoln Property, Tradition Holdings, and Gigabit Fiber partner to develop 800K SF data center campus. Lincoln Property, in partnership with Gigabit Fiber and Tradition Holdings, has announced plans to develop a communications infrastructure campus in South Dallas. The facility will feature over 800,000 square feet of data center and technology space, supported by up to 540 MW of total power. Ryan Sullivan, Executive Vice President of Lincoln’s Data Center Group, highlighted the region's growth, stating, "South Dallas is booming with activity and a growing demand for data center assets... Lincoln is deeply committed to developing in the Dallas market." Jonathan Perlman of Tradition Holdings emphasized the strategic collaboration, noting that combining Lincoln's development expertise with Gigabit's sector knowledge positions the project for success. Tom Spackman, CEO of Gigabit Fiber, added that the partnership will accelerate campus development, fostering innovation and benefiting businesses and communities across the Metroplex.

DEVELOPMENT: Cipher Mining nearing completion of $7 million project. Cipher Mining is expanding its presence in West Texas with the near completion of the Black Pearl Data Center in Winkler County. The $7 million project encompasses a 19,579-square-foot, single-story pre-engineered metal building that includes office and shop spaces. The facility is on track for energization by the end of the second quarter of 2025 and is expected to support 250 MW of air-cooled and 50 MW of liquid-cooled cryptomining operations. Will Iwaschuk, co-president at Cipher Mining, highlighted the company's diversified power sourcing strategy, stating that while most of their power comes from the Texas grid, they utilize a combination of fixed-price power contracts and spot market rates.

DEVELOPMENT: Data center planned in Rome, GA. Floyd County, Georgia, is set to welcome its third data center, as developers have secured an option on 15 acres along Highway 53. This project, referred to as Project Sassy, involves developers who have entered into an agreement with the Rome-Floyd County Development Authority (RFCDA) in December 2024. The option grants the developers the exclusive right to purchase the 15-acre parcel within an 18-month period at a rate of $60,000 per acre. RFCDA President Missy Kendrick explained, "The project owns land adjacent to this property and was interested in entering an option to add this 15 acres to it."

FINANCING: Newmark arranges $600 million in construction financing. Newmark has successfully arranged a $600 million construction loan to finance a 50 MW build-to-suit data center in Northern Virginia. This development is a collaborative effort between Blue Owl Real Estate, Chirisa, and PowerHouse Data Centers. The financing was orchestrated by Newmark's Jordan Roeschlaub, Jonathan Firestone, Clint Frease, Nick Scribani, Ben Kroll, John Caraviello. They worked in collaboration with Brent Mayo, Executive Managing Director and Head of Newmark's Data Center Capital Markets.

READ: Hyperscale data center capacity to triple by 2030.