< PreviousINVES TMENT PROFILE: WASHINGTON, DC The Nation’s Capital — a Global Hub For Business A new Vitality Fund gains traction as a global fi rm relocates Americas HQ from New York to DC. Call it the “investment manager shot heard around the world.” e corporate relocation of a global investment and asset management fi rm from New York City to Washington, DC, is the type of fi nancial services sector move that grabs the attention of everyone from Wall Street to Pennsylvania Avenue. In the case of global asset manager Meridiam, the vibes also extend from the Eiff el Tower to the White House. Headquartered in Paris, Meridiam specializes in developing, fi nancing and managing long-term public infrastructure projects. Founded in , this multinational company with more than $ billion in assets under management has forged a two- decade track record of investing in sustainable development in Europe, North America and Africa. Now, they get to work from a District of Columbia offi ce with a direct view of the Oval Offi ce. Leaving behind the confi nes of Manhattan, Meridiam elected last November to set up shop for its North American headquarters at Pennsylvania Avenue in downtown Washington. You may have heard of its neighbor across the street: the White House. “We made the decision to move our North American headquarters to DC because it’s a natural home for our business,” says Omri Gainsburg, chief operating offi cer of Meridiam Americas. “Our whole mission is really about delivering sustainable infrastructure and improving people’s lives. Many of the decision- makers involved in that process — the public sector at all levels, international fi nancing agencies, the associations of offi cials seeking to form partnerships with private sector investors and infrastructure experts — are here in DC.” Meridiam: ‘DC is the Perfect Home for Us’ e DC Vitality Fund played a key role in securing the move. “We were thrilled to have the mayor’s support and delighted to have been awarded the Offi ce of the Deputy Mayor for Planning and Economic Development’s (DMPED’s) Vitality Fund grant,” Gainsburg says. Meridiam is the third recipient of the District’s Vitality Fund, which was created last year through a $ million investment by DC Mayor Muriel Bowser. e fund is a multi-year, by RON STARNER ron.starner@siteselection.com 86 SEPTEMBER 2024 S I T E S EL E C T I O N The White House at 1600 Pennsylvania Avenue is across the street from the new HQ of Meridiam. Photo by Kelsey Graczyk courtesy of the National Park ServiceThis Investment Profile was prepared under the auspices of the Washington DC Economic Partnership. For more information, contact Audrey Polk at apolk@wdcep. com. On the web, go to www.wdcep.com. S I T E S E L E C T I O N SEPTEMBER 2024 87 performance-based incentive program designed to support companies in target industries that are actively planning to relocate, expand or retain space and create jobs in DC. “Washington, DC continues to attract national and global companies that want to be in the nation’s capital and have access to world-class talent,” said DC Mayor Muriel Bowser. “There are many reasons top employers want to be in DC — our workforce and proximity to changemakers, our arts and culture scene, our beautiful parks and world-class transit system – and tools like the Vitality Fund help make the decision even easier for businesses.” Meridiam occupies over 20,000 sq. ft. at 1700 Pennsylvania Avenue, N.W., and brings 60 new jobs to DC as part of the deal. “Washington, DC, is the perfect home for Meridiam in the Americas,” said Nicolas Rubio, Americas CEO for Meridiam. “As a global hub for global decision-makers, engineering services, development banks and sustainability leaders, DC is the natural place for Meridiam to put down roots and continue to grow.” Creating a Soft Landing for FDI DMPED partners with the Washington DC Economic Partnership (WDCEP) on this and other programs to attract business in high-growth sectors. The Washington, DC Global Soft Landing Program is another initiative designed to assist this effort. The program offers two tracks: The Penn West Global Soft Landing program and the GW x Penn West Build Fellowship. Both are designed to help investors with securing discounted real estate, tailoring immigration solutions, conducting site selection, doing custom research and market intelligence, and offering customized community tours. The Penn West Global Soft Landing Program provides eligible applicants with workspace at Studio by Tishman Speyer, a premium coworking space at 900 19th Street, N.W. The program is part of a partnership among WDCEP, DMPED and key local stakeholders including chamber, neighborhood, and university organizations. Audrey Polk, vice president of corporate attraction for WDCEP, says the Global Soft Landing program is unique because it offers through the GW x Penn West Global Build Fellowship access to cap-exempt H-1B visas for qualifying workers, thereby granting work visa status to foreign nationals wanting to do business in the U.S. “It removes the numerical limitation of H-1B visas that can be allocated to a foreign national.” says Polk. “And it significantly reduces the typical waiting period for visa approval. The Build Fellowship can offer a complete immigration solution to foreign nationals within 10-12 weeks from the first conversation with a company. Each awardee must donate five hours per week to George Washington University, but they are flexible on how the work can be done. In turn, you receive the proper visa to work in the U.S. We have had a lot of excitement since launching this program.” Polk notes that with offers like the Vitality Fund and Global Soft Landing, “DC is removing barriers to entry for both startups and established businesses.” The best example of this, she adds, came when DC moved quickly to pass a long-term incentives package that successfully retained Monumental Sports & Entertainment, the Washington Wizards of the NBA, and the Washington Capitals of the NHL while providing $515 million in city funding to modernize the complex that serves as the home arena for the two professional sports franchises. Sara Adams, director of business attraction and expansion for DMPED, says that since the inception of the Vitality Fund, nine projects have taken advantage of the program. “The city partners with WDCEP to recruit businesses and we also engage brokerage firms such as Jones Lang LaSalle,” notes Adams. “We presented to JLL about four months prior to the launch of the program to promote our new business attraction incentive”, she says. “Then a broker reached out to us about Meridiam. The decision driver for them centered around access. It was a natural transition for them to relocate here, given that DC is an international city home to global firms, institutions, and industry leaders along with a highly skilled workforce.” Meridiam Americas COO Omri Gainsburg calls DC a “natural home” for the company’s North American HQ. Photo by Prakash Patel courtesy of Studio Alliance88 SEPTEMBER 2024 S I T E S EL E C T I O N MID- A TLANTIC REGION When it comes to some of the headwinds facing the nascent offshore wind industry (see “Keeping Up with the Jones Act,” Site Selection, July 2024), officials from both the public and private sectors are prone to saying that the project led by the Biden Administration is simply too important to fail. In the wake of Ørsted’s recent pullback from two planned wind farms off the coast of Maryland — which it blamed on the effects of inflation, interest rates and supply chain hurdles — the Maryland Legislature and Gov. Wes Moore responded in a manner that suggests the proverbial act of squeezing lemonade from lemons. In May, Gov. Moore signed Maryland HB 1296. Having taken effect in June, it allows the state to re-allocate Offshore Renewable Energy Credits previously awarded to Ørsted to US Wind, which is investing a projected $1.5 billion into wind energy and supply chain projects in Maryland and its offshore waters. The legislation drew immediate praise from the Oceantic Network, an organization that works to advance offshore wind and connected supply chains. CEO Liz Burdock said that it “demonstrates Maryland’s steadfast commitment ... to develop and help reset current markets.” In a statement delivered to Site Selection, Nancy Sopko, US Wind’s senior director of external affairs, praised the action as well. “The new law is by GARY DAUGHTERS gary.daughters@siteselection.com Offshore wind doubles down against adversity. POWERING THROUGH THE PAIN Dominion Energy hits a milestone off Virginia. Photo courtesy of Dominion Energy S I T E S E L E C T I O N SEPTEMBER 2024 89 a clear signal,” Sopko says, “that offshore wind is here to stay.” In addition to two offshore wind farms, US Wind’s commitment to wind energy projects in Maryland includes $40 million for port infra- structure upgrades, a $140 million subsea cable manufacturing facility and $150 million to develop Sparrows Point Steel, a staging project for the industry at the site of the former Bethlehem Steel plant at Baltimore’s sprawling Tradepoint Atlantic logistics facility. In addition to producing monopile foundations and other steel components for the company’s MarWin and Momentum Wind projects off Mary- land, Sparrows Point Steel is conceived as a hub for offshore wind projects up and down the East Coast. Last November, Baltimore County and Sparrows Point Steel won a federal grant of $47 million from the U.S. Maritime Administration from the Port Infrastructure Development Program to support early works and upgrades to the site. “We are working hard to bring offshore wind energy to Maryland and this award gives a much- needed boost to our efforts to establish an offshore wind supply chain right here in Baltimore,” said Jeff Grybowski, Sparrows Point Steel’s CEO. Virginia Project to Bolster Supply Chain In July, Virginia notched a huge investment geared toward supporting the offshore wind supply chain. LS Greenlink, the U.S. subsidiary of South Korea’s LS Cable, announced plans for a $681 million subsea cable manufacturing facility on 100 acres at the Deep Water Terminal Site in Chesapeake, near the Ports of Virginia. The company says the high-voltage direct current (HVDC) cable factory will be the largest of its kind in the country. The cables — typically consisting of a copper conductor surrounded by layers of insulation and coating — deliver electricity from offshore turbines to power stations onshore. According to a release from Virginia Gov. Glen Youngkin, the 750,000-sq.-ft. manufacturing facil- ity will create 330 full-time jobs at an average salary of around $76,000. Gov. Youngkin approved a $13.2 million grant from the Commonwealth’s Opportu- nity Fund to assist the City of Chesapeake with the project, which is also eligible to receive state benefits from The Port of Virginia Economic and Infrastruc- ture Development Zone Grant Program. It qualified for $100 million in investment tax credits under the federal Inflation Reduction Act. LS Greenlink reportedly scouted numerous locations along the East Coast. The Virginia Economic Development Partnership worked with the City of Chesapeake, the Hampton Roads Alliance and the Virginia Maritime Association to secure the win. Operations are expected to begin in 2027. “In addition to the direct benefits to the Hampton Roads economy, this decision reflects our region’s desire and ability to serve as one of the primary hubs of the offshore wind industry in the U.S.,” said Doug Smith, president and CEO of the Hampton Roads Alliance. “We eagerly celebrate this announcement and will continue working to grow the offshore wind industry in Hampton Roads.”90 SEPTEMBER 2024 S I T E S EL E C T I O N Virginia’s Atlantic waters host what is currently the country’s biggest offshore wind venture. In August, Dominion Energy’s Coastal Offshore Wind Project achieved a milestone with the installation of the 50th monopile foundation for the 2.6-gigawatt project 33 miles off the coast of Virginia Beach. As Site Selection has reported, monopile installation commenced in May. The wind farm is to consist of 176 turbines that will generate enough energy to power up to 660,000 homes, according to Dominion. Historic Investment in Delaware Port The State of Delaware is part of a $635 million public-private partnership announced in May that’s to quadruple the capacity of the existing Port of Wilmington. The project — undertaken with the Wilmington port’s private operator Enstructure — will add a second port facility two miles away, the combined new entity to be known as Port Delaware. In addition to the four- fold expansion of the current facility’s container capacity, the project will allow for larger ships to be serviced through improvements such as deeper drafts. According to information supplied by the office of Gov. John Carney, the expanded port — projected for completion in 2027 — will have a capacity of 1.6 million TEUs, up from the current capacity of 400,000 TEUs. It’s expected to result in the creation of 11,480 total jobs, including 6,000 during construction, while generating $76.2 million in state tax revenues. “For decades,” said Carney in a statement, “jobs at the Port of Wilmington have been a gateway into the middle class for thousands of workers and their families — the kind of jobs our state and country were built on. This investment to expand the Port will position Delaware to compete for container cargo and larger ships. It will bring new, good-paying union jobs to Wilmington.” LS Greenlink’s planned cable facility in Virginia. Rendering courtesy of Business Wire Norway-based Equinor Wind and Virginia Electric and Power Co. were announced as provisional winners of the federal Bureau of Ocean Energy Management’s (BOEM) offshore wind energy lease auction for the Central Atlantic region announced on August 14. Equinor’s provisional lease at $75 million consists of 101,000 acres 26 nautical miles from Delaware Bay. Virginia Electric and Power’s $18 million lease encompasses 176,505 acres and is approximately 35 nautical miles from the entrance of Chesapeake Bay. The leases, according to BOEM, do not authorize the construction or operation of an offshore wind facility, but provide the right to submit a project plan for BOEM’s review. “Today’s lease sale represents a major milestone in meeting the demand for clean renewable energy along the East Coast,” said BOEM Director Elizabeth Klein in a statement.92 SEPTEMBER 2024 S I T E S EL E C T I O N Economic, human, social and environmental development reflect the four pillars that have guided Qatar’s National Vision 2030 since its inception 16 years ago. The concept of becoming a sustainable, advanced society has been at the heart of every decision carried out by the country’s leadership, including the development of the $45 billion Lusail Smart City and the $7.4 billion Msheireb Downtown project. Lusail City is a nearly 9,400-acre urban development project located north of the country’s Lusail settlement. Across four islands the site features 19 multi-purpose residential, mixed-use, entertainment and commercial districts and 22 top- rated hotels, fit to support a population of 450,000 residents. Technology is the driving force behind the sustainable city model, equipping citizens and businesses with integrated information and communications infrastructure, a city-wide wi-fi and fiber optic network, real-time environmental monitoring and intelligent transportation systems. AI and data analytics are used daily to enhance urban living and business operations. Meanwhile, Msheireb Downtown in Doha bridges heritage with innovation, representing what the developers call the first smart downtown in the world. Powered by smart grids and renewable energy solutions, the district has become a cultural hub for tourism, business and residents alike. “Both cities can serve as blueprints for future urban living, demonstrating how modern technology can coexist and enhance cultural heritage,” says Invest Qatar Investor Relations Senior Manager Fahad Al-Kuwari. “This strategic focus on smart cities showcases how innovation can drive sustainable growth and resilience. It provides a model that other nations can adapt to their unique contexts while respecting their cultural identities.” Having completed the first two phases of its National Development Strategy, the country has now entered the final stretch with the launch of the Third National Development Strategy (NDS3) in 2024. Lessons learned and roadblocks identified throughout the initial phases have cleared the way for NDS3 to be the most aggressive approach in delivering transformative outcomes. Over the next seven years NDS3 will tackle seven strategic national outcomes — sustainable economic growth, fiscal sustainability, a future- ready workforce, cohesive society, quality of life, environmental sustainability and government excellence. Over the first year of its deployment NDS3 will address issues like unclear mandates in implementing new policies, integration of the planning and budgeting process and more, introducing major policy reform to remove such roadblocks and move projects and initiatives ahead without delay. Tech Leadership The economic growth model aims to advance Qatar’s energy sector as a leading gas producer, while exploring low-carbon energy projects. In addition it will look to diversify industry clusters by strengthening its manufacturing, tourism Qatar Has Space to Innovate by ALEXIS ELMORE alexis.elmore@siteselection.com MIDDLE EA S T & NOR TH AFRICA Lusail Smart City is a large-scale urban development designed to create a sustainable and technologically advanced city. Photo courtesy of Lusail Real Estate Development Company S I T E S E L E C T I O N SEPTEMBER 2024 93 and logistics sectors and enabling growth within IT, nancial services and higher education. As IT and AI technologies are at the forefront of initiatives like smart cities, Qatar looks to expand private-sector adoption of these technologies by supporting entrepreneurship and programs such as the National Applied Programs for Emerging Technology and a new National Data & Analytics Program. To spark further innovation, NDS will create incentives targeting private-sector-led R&D, developing academic research activities and creating regulations that promote R&D ecosystem development. Building upon this landscape provides tech companies with a unique advantage to bring operations to Qatar and develop solutions catered to target areas such as climate, agriculture, health care and emerging information technologies. “Tech companies nd Qatar appealing due to the supportive regulatory environment, access to state-of-the-art facilities, and a thriving ecosystem that encourages collaboration and growth,” says Al- Kuwari. “Moreover, Qatar’s strategic location and connectivity provide tech companies with access to broader regional markets, making it an ideal hub for their operations.” One such tech rm is Quantiphi, a Google Cloud partner and self-described “AI- rst digital engineering company” which in May announced the signing of an agreement with the Qatar Free Zones Authority (QFZ) to establish a global technology hub in Qatar’s Free Zones. e announcement noted the agreement was inked one year after the Google Cloud region in Doha was launched in . “ e expansion to Qatar, a country known globally for connecting stakeholders in arti cial intelligence, entrepreneurship and innovation, underscores Quantiphi’s commitment to strategic growth, partnership and continued adaptation to global market needs,” said Ritesh Patel, co-founder of Quantiphi. A Citizen-Driven Future Also in May, Qatar Prime Minister Sheikh Mohammed bin Abdulrahman Al ani announced incentives totaling $ . billion would now go toward accomplishing programs catered to AI, technology and innovation. “ is signi cant funding is a critical cluster of the NDS , which aims to develop Qatar’s digital economy and long-term strategic capabilities in AI and other emerging technologies,” says Al- Kuwari. “ e IT and digital services cluster drives the private sector’s adoption of new technologies, establishes a National Data and Analytics Program, supports digital transformation for SMEs and enterprises, promotes Qatar-based cloud services globally, enhances regulations and develops a cybersecurity legal framework.” Fanar, a Generative AI Arabic Language Model (LLM), is one example of how the country is driving digital transformation for companies, institutions, researchers and students in Qatar. e new program will bridge the gap between the Arabic and English languages, creating a highly accurate dataset of up to billion words. e goal is for users to generate accurate information and streamline tasks for Arabic users, while providing accurate translations for English- speaking companies to engage Arabic speakers. NDS additionally introduced a new $ billion Fund of Funds program in early . e program is the rst of its kind in the country, primarily focusing on Qatar’s tech and health care industries. Its goal is to remove barriers for entrepreneurs who need venture capital (VC) funding by providing indirect investment or direct co-investment through fund managers. “Entrepreneurs bring fresh perspectives, agility and creativity, which are essential for addressing contemporary challenges and seizing new opportunities,” says Al-Kuwari. “By empowering entrepreneurs, Qatar is fostering a culture of innovation that propels advancements across diverse sectors.” Qatar has identi ed that there is a gap between entrepreneurs and obtaining VC and support to get started, as there has been no dedicated capital pool for companies past seed funding. Even so, the country recently was ranked No. globally for entrepreneurship by the Global Entrepreneurship Monitor’s - report. By empowering entrepreneurs, Qatar is fostering a culture of innovation that propels advancements across diverse sectors.” — Fahad Al-Kuwari, Investor Relations Senior Manager, Invest Qatar direct co-investment through fund managers. By empowering entrepreneurs, Cloud partner and self-described “AI- rst digital engineering company” which in May announced S I T E S E L E C T I O N SEPTEMBER 2024 95 Texas, Illinois and Ohio once again lead the Top 10 states for logistics facility projects documented over the past five years by Site Selection’s Conway Projects Database. Chicagoland, Dallas-Fort Worth and Greater Houston hardened their locks as leaders among the Top 10 metros. The data reveal continued surges in distribution center activity in Texas (14.5%) and Pennsylvania (22.1%). Among metro areas, Houston (21%), New York (19.5%) and Los Angeles (18.3%) show the most growth since the five-year totals published here last year. Indicative of the consistency that accrues from our multi-year formula, the states and metros that comprise our Top 10s are unchanged from 2023, with negligible shuffling among their ranks. Having emerged from the chaos of COVID-19, logistics and distribution strategies are incorporating lessons learned from the breakdown of global supply chains, with a growing by GARY DAUGHTERS gary.daughters@siteselection.com L OGIS TICS & DIS TRIBUTION But changes roil global supply chains. Chicago STILL the Hub is Chicago leads the nation in logistics projects. Image: Getty ImagesNext >