CoreWeave has secured $4 billion to develop a state-of-the-art data center campus in Lancaster, Pennsylvania. The project, backed by a powerful funding group, aims to boost both the region’s economy and the nation’s capacity to handle advanced AI workloads.
The fresh $4 billion joint venture involves Blue Owl Capital, Chirisa Technology Parks, and Machine Investment Group and pushes Blue Owl’s collaboration with Chirisa to a massive $20 billion funding scale. Together, these investments currently support projects approaching half a gigawatt across Virginia and Pennsylvania, making it one of the nation’s most significant AI infrastructure undertakings.
Blue Owl, which manages $273 billion in assets, has already financed Virginia-based data centers delivering 0.5 GW capacity. This track record now includes a $750 million campus in Chesterfield, Northern Virginia, where CoreWeave is the main tenant with 120 MW available for AI-driven tasks.
Marc Zahr, co-president and global head of real assets at Blue Owl, highlighted that the aim of these projects is to provide essential digital foundations that can sustain both societal growth and future economic activity.
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Lancaster campus to bring technology and local investment
The upcoming Lancaster data center will debut with 100 MW capacity and may expand up to 300 MW, setting it among the Mid-Atlantic region’s largest AI hubs. CoreWeave plans to invest a total of $6 billion on the sprawling 78-acre property at 216 Greenfield Road, previously the site of shuttered printing press facilities.
The design centres on sustainability and technological efficiency. Proprietary infrastructure and closed-loop cooling systems are set to nearly double traditional data centre energy performance. Adaptive reuse of existing structures and cutting-edge, low-noise chillers are integrated to reduce environmental impact while blending with Lancaster’s surrounding community.
Supporting this effort, the partners are contributing $200 million toward reinforcing the regional power grid in collaboration with PPL Electric Utilities. These upgrades will ensure grid resilience and meet the high energy needs of the campus while improving service reliability across Lancaster County.
Financing structure counters industry concerns
Questions about whether the AI infrastructure boom mirrors the overbuilding of telecom systems decades earlier are answered by CoreWeave’s financial model. Research from Rittenhouse highlights that nearly all of its debt is contract-backed, anchored to specific customer agreements and not speculative spending.
At present, 98% of the company’s revenue is locked into long-term contracts lasting at least four years. This lowers risk and reassures investors, further supported by an improved debt profile. Even as CoreWeave’s total debt rose from $8.8 billion to $11.2 billion, its average cost of capital dropped from 13% to 11%, reflecting lender confidence in its growth model.
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Jobs and economic growth for the region
Beyond technology, the project promises significant community benefits. The construction phase will employ more than 600 people, while at least 75 staff will run operations once the center is live, with staffing levels likely to more than double as the facility reaches full expansion.
According to David Kelly of Chirisa Technology Parks, the project will also deliver high-paying jobs, educational collaborations, and fresh opportunities that strengthen the digital economy in Lancaster and beyond.
Since early 2024, CoreWeave has raised over $25 billion in debt and equity to accelerate its global expansion, pushing toward a goal of providing 900 MW of active power before year-end. The Lancaster facility joins 33 sites worldwide, including 28 across the United States. Positioned within reach of more than 60 million residents from New York to Virginia, Pennsylvania is emerging as a key centre in CoreWeave’s growing AI landscape.
