Environmentally Sustainable Project Brings Significant Investments Benefitting Local Frederick County Community
Austin, TX – June 28, 2021 – Quantum Loophole, Inc., and TPG Real Estate Partners (TREP), the dedicated real estate equity investment platform of global alternative asset firm TPG, announced today 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.
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.
# # #
About TPG Real Estate Partners
TPG Real Estate Partners (“TREP”) is the dedicated real estate equity investment platform of global alternative asset firm TPG. Today, TREP has $5.6 billion of assets under management. Since its inception in 2009, TREP has built a differentiated investment portfolio comprised primarily of real estate rich platforms and portfolios located in the United States and Europe. The foundation of TREP’s investment strategy is a research and data-driven approach to investment theme generation, allowing it to be highly selective in identifying the most compelling opportunities in specific sectors and geographies. During its ownership, TREP’s value creation strategies focus on driving returns across three critical dimensions: the optimization of property-level performance, the aggregation and curation of strategically aligned portfolios, and the enhancement of platform capabilities. These strategies are frequently pursued in partnership with dedicated management teams.
TPG was founded in 1992 and now has $96 billion of assets under management with investment and operational teams in 12 offices around the world. For more information, visit www.tpg.com.
About Quantum Loophole
Quantum Loophole disrupts data center development delays with rapid platform delivery for land, power, connectivity, and scale. The company’s first-of-its-kind gigawatt-scale, master planned data center development approach uniquely addresses the scalability, connectivity, and cost-efficiency challenges of today’s large-scale deployments. Powered by innovative energy, fiber, and access control systems, Quantum Loophole’s master planned communities take the guesswork out of adding needed data center capacity, allowing hyperscalers, enterprises, and colocation providers speed go-to-market capabilities. Incorporating renewable energy, land and water improvements, Quantum Loophole offers an environmentally sound approach that reduces the overall carbon footprint while fully enabling powered land with the highest level of connectivity, reliability, and security. For more information, please visit www.quantumloophole.com.
This press release contains, and our officers and representatives may from time to time make, “forward looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will,” and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding our plans for data center cities, sustainable growth and community mindedness, ability to manage pricing pressure, and similar statements.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans, and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, economic and financial conditions, including volatility in interest and exchange rates; commodity and equity prices, and the value of financial assets, land prices, power pricing volatility, capital and/or credit market availability; the adequacy of our cash flow; strategic actions; the occurrence of hostilities; political instability or catastrophic events; changes in customer demand; the extent to which we are successful in gaining new long-term relationships with customers and the level of service failures that could lead customers to use competitors’ services; and developments and changes in laws and regulations, including increased regulation of the power and data infrastructure industry through legislative action and revised rules and standards, among others.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.