TPG Real Estate Partners And Quantum Loophole Announce Strategic Joint Venture To Develop Maryland’s First Gigawatt Scale Data Center Development

By AIT News Desk On Jun 29, 2021

Environmentally Sustainable Project Brings Significant Investments Benefitting Local Frederick County Community

Quantum Loophole, Inc, and TPG Real Estate Partners (TREP), the dedicated real estate equity investment platform of global alternative asset firm TPG, announced that they have formed a strategic joint venture to acquire and develop an innovative, first-of-its-kind, gigawatt scale data center community in Frederick County, Maryland. In connection with the joint venture, TREP has acquired a minority stake in Quantum Loophole.

Quantum Loophole’s partnership with TREP to acquire 2,100 acres in Frederick County, Maryland, sets into motion the first-of-its-kind, master-planned data center community less than one millisecond by fiber to Northern Virginia. #CleanCloudCommunity

The investment from TREP has been used, in part, to fund Quantum Loophole’s recently closed purchase of an approximately 2,100-acre property in Frederick County, Maryland, formerly known as Alcoa Eastalco Works.

“Demand for cloud computing and cloud-based services has grown rapidly over the past decade, and Frederick County is an important growth outlet for the Northern Virginia data center market,” said Ty Newell, Managing Director at TREP. “With industrial zoning and access to significant power capacity, the development site will offer several benefits to a fast-growing hyperscale tenant base that is intensely focused on speed of delivery. We are pleased to partner with the team at Quantum Loophole and look forward to executing on our shared vision for an innovative and sustainable development that will deliver enduring value to the local community.”

“Partnering with TREP strengthens our vision, setting us firmly on the path to build the first-ever, mass-scale gigawatt data center community,” commented Josh Snowhorn, Founder and CEO of Quantum Loophole. “This project marks the first comprehensive approach to data center development inclusive of environmental impact, efficiency in power use and distribution, fiber connectivity, and a streamlined approach to construction. Quantum Loophole’s approach enables cost efficiencies, expedited time to market, and a revolutionary and industry-leading commitment to sustainability for hyperscale data center developments.”

The master planned, first-of-its-kind, clean cloud community in Frederick County is less than one millisecond by fiber from the heart of the Northern Virginia Internet ecosystem. Starting with a gigawatt of transmission power capacity, it is anticipated that 30 to 120 megawatt capacity data center modules can be deployed in less than nine months. Additionally, construction of a massive and robust fiber ring with regional interconnection points enables large-scale traffic flows for Hyperscale, Telecom, and Enterprise clients.

“We are thrilled to partner with TREP on this project and see it as the first of many exciting initiatives we have planned,” added Snowhorn. “Together, we are implementing a truly powerful next-generation clean cloud community that will reshape the industry, raising the bar for accountability, sustainability, and planned future data center development to the next level.”

Quantum Loophole and TREP are committed to developing the master planned data center in a way that enables the most advanced computing technology, benefits local communities, and respects the environment. The project plan includes efficient design for sustainable power and water use, investments in robust fiber connectivity, and a thoughtful, nature-first aesthetic to protect views and reduce visibility from public roadways, while also preserving existing structures important to local history.

“This is big news for Frederick County! I am pleased that the former Eastalco property will once again serve as an employment center with high-paying jobs,” Frederick County Executive Jan Gardner said. “Quantum Loophole has committed to develop an environmentally sensitive data center project that respects and values the surrounding community and our Livable Frederick Master Plan. Data centers provide a stable source of tax revenue and jobs, while having a net positive impact on local services such as schools, roads and other infrastructure. I look forward to Quantum Loophole sharing their plans with the surrounding community.”

Houlihan Lokey is serving as the exclusive financial advisor to Quantum Loophole. Jackson Walker, L.L.P. and David Severn of Offit Kurman P.A. served as Quantum Loophole’s legal advisors.

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