Terremark's third data center in Culpeper will bring its total raised-floor footprint in the region to 150,000 square feet

UPDATE: $50 million private offering priced at 112 percent

US data center service provider Terremark said Monday it had commenced construction of a third facility at its Culpeper, Va., campus called NAP (Network Access Point) of the Capital Region.

The expansion, which the company expects to cost about $45 million initially, is a reaction to quicker-than-expected growth in demand from federal government agencies and large enterprises, according to Terremark Chairman and CEO Manuel Medina.

In a statement, Medina said take-up of space at the campus had surpassed expectations.

"We believe the expansion of our datacenter footprint there will serve as a key catalyst for the continued growth of our company."

The new pod, whose target completion date the provider did not specify, will add 50,000 square feet of raised floor.

About 75 percent of the first two pods, identical in size, has been leased out, according to Terremark. The campus also includes a 72,000 square foot administrative building.

The provider announced launch of the second pod in February.

The Miami, Fla.-based company said key market drivers in the region are demand for cloud-based services from federal agencies (Culpeper is about 70 miles away from Washington, D.C.), demand for energy efficient infrastructure and an overall increase IT spending by enterprises.

Terremark has data centers in a dozen locations around the world, including facilities in US, South America and Europe.

Other data center companies that have recently announced major expansion projects in Virginia include Digital Realty Trust, which said it had bought two facilities and an undeveloped lot in the state in January, and QualityTech, which won a 210-acre property in Richmond, Va., in a bankruptcy auction earlier this month.

The provider also announced on Monday pricing of a $50 million private securities offering, expected to close Wednesday.

The notes, due 2017 and priced at 112 percent, will be issued to qualified institutional buyers.