Stack affiliate SAC III Acquisition will acquire up to 2,990 acres at the Southern Virginia Megasite for multi-gigawatt hyperscale data center development. This strategic land acquisition positions Stack.
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Deal Analysis
The acquisition of up to 2,990 acres at the Southern Virginia Megasite by Stack affiliate SAC III Acquisition for $737.8 million USD represents a forward-looking land banking strategy for multi-gigawatt hyperscale data center development. This substantial land parcel in Danville and Pittsylvania County, Virginia, positions Stack Infrastructure to meet anticipated demand from hyperscale and cloud clients, aligning with its core business of providing build-to-suit and colocation solutions. The announced 299 MW initial capacity suggests a phased approach to developing the vast site, allowing for flexible deployment over time. This deal structure, utilizing SAC III Acquisition, an entity with "undisclosed target sector and geography" and limited public operational details, could offer Stack specific strategic or financial advantages in securing such a large-scale asset. The transaction, announced on 2026-03-12, secures a critical resource for future digital infrastructure expansion in a key U.S. market.
Stack Infrastructure, as a digital infrastructure company focused on developing and operating data centers for hyperscale and cloud clients, directly benefits from this acquisition by securing a long-term development pipeline. The Danville-Pittsylvania Regional Industrial Facility Authority, established in 2004 by the City of Danville and Pittsylvania County, Virginia, realizes a significant economic development outcome through the $737.8 million USD sale of the 2,990-acre Southern Virginia Megasite. This transaction demonstrates the continued land scarcity and rising costs for large-scale data center development in established U.S. markets like Virginia, compelling developers to pursue expansive land banking strategies. The use of SAC III Acquisition, an entity whose "specific deal size and operational details are not publicly available," indicates a specialized vehicle for these strategic land plays, allowing Stack to execute large-scale acquisitions efficiently. This development stage project, announced on 2026-03-12, further solidifies Virginia's position as a premier location for digital infrastructure investment.
- Stack affiliate SAC III Acquisition to acquire up to 2,990 acres.
- Deal value of $737.8 million USD.
- Located at the Southern Virginia Megasite in Danville and Pittsylvania County, Virginia.
- Targeted for multi-gigawatt hyperscale data center development.
- Initial announced capacity of 299 MW for the development stage project.
- Seller is the Danville-Pittsylvania Regional Industrial Facility Authority, established in 2004.
Source Intelligence
KEY DETAILS
SAC III Acquisition has the option to purchase 2,990 acres. The property may be purchased in phases, with the first phase including at least 1,000 acres in a deal that must complete by June 2027. The deal is reportedly contingent on sourcing 299MW of grid capacity by the end of 2028 from Appalachian Power. Stack could invest up to $73 billion into the site, according to VB, over a 30-year period. The Southern Virginia Megasite at Berry Hill totals 3,528 acres. Electrical service is provided through American Electric Power (AEP) via an existing new double-circuit 138kV substation that provides 100MW of immediately available power capacity. The site is located next to a 125MW solar facility, with 55MW battery storage that has been approved and set to go live in 2027, and has direct access to the Williams Transco Pipeline via an existing gate station on-site. In January, the Pittsylvania County board of supervisors and planning commission unanimously approved the creation of a new heavy industry zoning district, called M-SVMS, and applied it to the megasite, providing by-right zoning for industrial developments, including data centers.
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Deal Size
The purchase price was $238,000 per acre, so the deal could total $737.8 million.
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Capacity
The deal is reportedly contingent on sourcing 299MW of grid capacity by the end of 2028 from Appalachian Power.
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Location
An affiliate linked to data center developer Stack is acquiring a large tract of land in southern Virginia. The Danville-Pittsylvania Regional Industrial Facility Authority this week unanimously voted to approve an agreement to sell property at the Southern Virginia Megasite at Berry Hill to SAC III Acquisition. – Southern Virginia Megasite at Berry Hill SAC III is linked to Stack Infrastructure... Danville and Pittsylvania County are located on Virginia’s southern border with North Carolina
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Announcement
March 12, 2026 By Dan Swinhoe
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Expected Close
the first phase including at least 1,000 acres in a deal that must complete by June 2027: all phases must close by June 2031.
PARTIES MENTIONED IN SOURCE
S
SAC III Acquisition
buyer
"The Danville-Pittsylvania Regional Industrial Facility Authority this week unanimously voted to approve an agreement to sell property at the Southern Virginia Megasite at Berry Hill to SAC III Acquisition."
S
Stack Infrastructure
developer
"SAC III is linked to Stack Infrastructure, with address listings for the former matching Stack’s official listed address. Virginia Business reports Stack has confirmed its involvement in a statement to the publication."
D
Danville-Pittsylvania Regional Industrial Facility Authority
seller
"The Danville-Pittsylvania Regional Industrial Facility Authority this week unanimously voted to approve an agreement to sell property at the Southern Virginia Megasite at Berry Hill to SAC III Acquisition."
high quality
Enriched Mar 12, 2026
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