Blue Owl and Chirisa Technology Parks Close $4 Billion Joint Venture Partnership Including Machine Investment Group for Lancaster Campus

Rhea-AI Summary

Blue Owl Capital (NYSE:OWL) has announced a significant $4 billion joint venture partnership with Chirisa Technology Parks (CTP) and Machine Investment Group for the CoreWeave developments in Lancaster, Pennsylvania. The partnership extends Blue Owl's total funding commitment to CTP to $20 billion, supporting over 1GW of developments.

The Lancaster campus will serve as an AI infrastructure hub, featuring high-performance computing facilities with nearly twice the energy efficiency of traditional data centers. The project includes a $200 million investment in local power grid infrastructure improvements. The facility will incorporate sustainable design elements, including closed-loop cooling systems and advanced noise reduction technology.

Positive

• Significant expansion of funding commitment from $4B to $20B for AI infrastructure development
• Partnership with CoreWeave, a fast-growing cloud infrastructure provider for AI workloads
• Nearly 2x energy efficiency compared to traditional data centers
• $200M investment in local power grid infrastructure improvements
• Sustainable design with advanced environmental features

Negative

• Large capital expenditure requirement of $4B for initial development
• Potential execution risks in developing high-performance computing facilities
• Dependency on successful partnership with multiple parties

Insights

Investment Strategist

Blue Owl's $4B AI data center JV and $20B partnership expansion significantly strengthens its position in high-growth AI infrastructure market.

Blue Owl Capital has made a substantial strategic move in the AI infrastructure space by closing a $4 billion joint venture with Chirisa Technology Parks and Machine Investment Group for CoreWeave's Lancaster development. More importantly, Blue Owl has expanded its development commitment with Chirisa to $20 billion, supporting over 1 gigawatt of data center developments—a massive scaling of their existing partnership that currently backs nearly half a gigawatt of projects.

This transaction positions Blue Owl at the forefront of the rapidly expanding AI infrastructure sector. The partnership strategically leverages complementary strengths: CoreWeave's GPU-as-a-service capabilities, Chirisa's data center development expertise, and Blue Owl's capital deployment capabilities. With $273 billion in assets under management as of March 2025, Blue Owl has the financial resources to fund these capital-intensive projects.

The Lancaster development represents more than just a data center project—it's a comprehensive ecosystem investment including $200 million for local power grid infrastructure improvements. This forward-thinking approach addresses one of the critical bottlenecks in AI infrastructure deployment: power availability and distribution.

The strategic focus on AI-optimized infrastructure—with nearly twice the energy efficiency of traditional data centers—demonstrates strong positioning for the next generation of computing needs. This partnership aligns perfectly with Blue Owl's stated investment thesis of supporting high-conviction investments with creditworthy partners in growth sectors, potentially generating significant long-term returns for the company.

Blue Owl Extends Development Partnership with Chirisa Technology Parks to $20 Billion to Support Over 1GW of Developments

LANCASTER, Pa., Aug. 25, 2025 /PRNewswire/ -- Funds managed by Blue Owl Capital ("Blue Owl"), and affiliates of Chirisa Technology Parks ("CTP") and Machine Investment Group ("MIG") today closed on a joint venture partnership to include $4 billion of funding for the previously announced CoreWeave developments in Lancaster, Pennsylvania.

CoreWeave has invested in the campus and will lease the site as part of its commitment to building future-ready AI infrastructure hubs in the regions that need them most — across America's critical economic corridors, including the Mid-Atlantic, which this facility will serve. The Lancaster location will join CoreWeave's expanding global network of AI data centers.

Blue Owl stated its intention to fund up to $20 billion of developments for CTP, extending the existing partnership between the two groups, which currently supports almost half a gigawatt of new developments underway in Virginia and Pennsylvania.

Marc Zahr, Co-President and Global Head of Real Assets at Blue Owl said, "This expanded partnership with CoreWeave, Chirisa Technology Parks and Machine Investment Group marks a significant step forward in building the mission critical infrastructure that will power the future of AI innovation. At Blue Owl, we are focused on supporting high-conviction investments with visionary and creditworthy partners – this collaboration is well representative of this thesis. CoreWeave's cutting edge GPU as a service capability, combined with CTP's deep expertise in AI data center development make this a uniquely powerful alliance, all supported by Blue Owl's differentiated scale and structuring capabilities. Together, we are not just funding data centers, we are enabling the scalable, resilient, and secure digital backbone of the AI workloads that will underpin society and the economy well into the future."

David Kelly, Managing Director North America at CTP, stated, "Our Lancaster development with Blue Owl and Machine Investment Group underscores our partnership's deep commitment to building sustainable, high-performance digital campuses while creating real opportunity for the communities where we operate. We believe that the deployment of AI infrastructure goes hand-in-hand with inclusive economic growth — bringing high-quality jobs, educational partnerships, and valuable opportunities for residents and families living in Pennsylvania to participate in the AI ecosystem."

"We are delighted to work with CTP and Blue Owl on an adaptive redevelopment that aligns with our strategy to repurpose and reimagine underutilized commercial properties in attractive locations," said Eric Rosenthal, Managing Partner at Machine. "Pennsylvania's strategic location and robust infrastructure make it an ideal setting to deploy capital into attractive new data center developments."

The new facilities under construction by CTP in Virginia and Pennsylvania are cornerstone developments in CoreWeave's rapidly scaling infrastructure footprint. CoreWeave is one of the fastest-growing cloud infrastructure providers for AI workloads.

Newmark Group Inc. acted as an advisor for the Lancaster Joint Venture.

About the CTP Lancaster Campus
The CTP Lancaster campus is planned as an innovation hub that will host compute infrastructure dedicated to the latest Artificial Intelligence applications. These applications are used every day by businesses, schools and government to unlock the productivity and innovation gains that are powering the rapidly emerging AI ecosystem.

They are built on proprietary infrastructure, optimized for high-performance computing with nearly twice the energy efficiency of traditional data centers.

The Lancaster campus will be sustainably designed and constructed to stringent federal and local environmental standards. Adaptive reuse of existing vacant industrial buildings will accelerate time to market and reduce the carbon footprint of construction. Closed loop cooling systems operate with minimal use of municipal water and no added chemicals. Low noise, magnetic levitation-based chiller systems for building cooling are specially designed for use in urban areas and significantly reduce noise while ensuring energy efficiency. In addition, emergency backup generators are enclosed to reduce noise and fitted with Selective Catalytic Reduction systems to achieve up to 99.8% reduction of NOx emissions. 

The parties also intend to fund approximately $200 million for local power grid infrastructure improvements in partnership with PPL Electric Utilities. This investment is targeted at delivering a safer, more efficient and resilient electric grid in the Lancaster region.

CTP and its partners are dedicated to delivering high technology campuses with a positive impact on the communities and environment in which we operate. We welcome enquiries and questions at lancaster@ctp-dc.com.

About Blue Owl:
Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives^®. With $273 billion in assets under management as of March 31, 2025, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Assets. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation. Together with over 1,200 experienced professionals globally, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com.

About CTP:
Chirisa Technology Parks is focused on the rapid delivery of high performance, leading-edge facilities to support hyperscale, HPC and AI customers across North America and Europe. With over 25 years of experience in Digital Infrastructure, CTP and its predecessors have developed, owned, and operated over 40 data center assets focused on large scale enterprise and hyperscale deployments. CTP currently has more than 1.6 GW under development in the USA. CTP's bespoke designs and rapid delivery process are focused on high-efficiency, leading-edge deployments. CTP has broad capability to partner and/ or operate critical facilities, offering a strong track record in build-to-suit hyperscale powered shells, HPC and AI-focused high-density deployments, turnkey data center solutions for Cloud customers, and bespoke edge deployments in major metropolitan areas. CTP is dedicated to delivering high technology campuses with a positive impact on the communities and environment in which it operates.

About Machine Investment Group:
Machine Investment Group is a real estate investment platform focused on investing in opportunistic, distressed, and special situations across all major asset classes in diverse geographies throughout the United States. Machine principals are directly responsible for deploying over $2.4 BN in capital to date. With a strong reputation, solutions-oriented approach, and extensive lender relationships, Machine aims to deliver consistent, opportunistic returns while maximizing value. For more information, please visit https://machineinv.com/.

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SOURCE Chirisa Piscataway Inc.

FAQ

What is the size of Blue Owl's joint venture partnership for the Lancaster campus?

The joint venture partnership for the Lancaster campus is $4 billion, with Blue Owl extending total funding commitment to $20 billion for CTP developments.

How much power capacity will Blue Owl and CTP's developments support?

The partnership will support over 1GW of developments, with current projects underway in Virginia and Pennsylvania representing almost half a gigawatt.

What environmental features are included in the Lancaster campus development?

The campus features closed loop cooling systems, magnetic levitation-based chiller systems for noise reduction, and generators with Selective Catalytic Reduction systems achieving 99.8% reduction of NOx emissions.

How much is being invested in local power grid infrastructure for the Lancaster project?

The parties plan to invest approximately $200 million for local power grid infrastructure improvements in partnership with PPL Electric Utilities.

What is the energy efficiency advantage of the Lancaster campus?

The Lancaster campus will operate with nearly twice the energy efficiency of traditional data centers through its proprietary infrastructure optimized for high-performance computing.