The NHL’s Washington Capitals and NBA’s Washington Wizards are moving out of the District of Columbia and into a new $2 billion "world-class" entertainment complex that will be built in Alexandria, Virgnia, the state’s Gov. Glenn Youngkin announced Wednesday. 

The project in the city’s Potomac Yard area – which will be funded under a public-private partnership -- is set to break ground in 2025 and will open in late 2028, according to Youngkin’s office. 

It said it will include a new global corporate headquarters for Monumental Sports & Entertainment – the owner of both teams – as well as "an industry-leading Arena for both the Washington Capitals and Washington Wizards, a state-of-the-art Monumental Sports Network media studio, the Wizards practice facility, a performing arts venue, and an expanded esports facility, in addition to bringing new retail, residential, restaurants, hotels, conference, and community gathering spaces.

"This is the most visionary sports and entertainment development in the world, bringing together entertainment, sports, and technology in the most advanced innovation corridor in the United States: a once-in-a-generation and historic development for the Commonwealth, sports fans, and all Virginians," Youngkin said in a statement Wednesday. 

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"The Commonwealth will now be home to two professional sports teams, a new corporate headquarters, and over 30,000 new jobs – this is monumental," he added. 

Youngkin’s office is estimating that the new project will "generate a combined $12 billion in economic impact for the Commonwealth and City of Alexandria."

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The Capitals and Wizards currently play in the Capital One Arena in Washington, D.C., just blocks away from the White House. The facility is owned by Monumental Sports & Entertainment. 

Youngkin’s announcement comes after D.C. Mayor Muriel Bowser and D.C. Council Chairman Phil Mendelson said Tuesday that they "unveiled legislation to support a complete renovation and modernization of the Capital One Arena," which opened in December 1997. 

"The legislation, which has unanimous support from the DC Council, outlines the District’s contribution of a half billion dollars to the modernization project to create a state-of-the-art urban arena and solidifies Monumental Sports & Entertainment as an economic anchor of the Gallery Place-Chinatown entertainment district and a destination for District residents and visitors," her office had said in a statement. 

But Monumental Sports & Entertainment CEO Ted Leonsis said "this is a once-in-a-lifetime opportunity to expand" and "we hope Capital One Arena and downtown D.C. remain an essential part of our future." 

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"We have plans to support ongoing development of Capital One Arena, and Monumental would continue to invest in the building and maintain its standing as one of the busiest arenas in the nation – continuing to host world-class live entertainment, covering a wide spectrum of music, comedy, cultural, community, and sporting events," he added. 

Fox News’ Chad Pergram contributed to this report.