CHICAGO — Metro Edge Development Partners has unveiled plans to build a $257 million data center within the Illinois Medical District (IMD) in Chicago. Construction is scheduled to begin in 2023 and be completed in 2024. Metro Edge secured a 75-year ground lease on a nearly two-acre parcel owned by IMD. The data center will rise five stories and span 184,720 square feet. The facility is 50 percent preleased. Corgan is the project architect. Clune Construction is overseeing all construction in partnership with Power Construction and Ujamaa Construction. T5 Data Centers is the project manager.
DORAL, FLA. — JLL has arranged the $34 million sale-leaseback of a 103,000-square-foot data center located at 2100 N.W. 84th Ave. in Doral, a suburb of Miami. Carl Beardsley, Jake Wagner, Josh Katlin, Luis Castillo and Manny de Zárraga of JLL represented the undisclosed seller, which will lease a portion of the space. The unnamed buyer will occupy the remaining space. Situated within America’s Gateway business park in Miami’s Airport industrial submarket, the freestanding facility features several fiber providers, a covered loading dock and 4,092 square feet of mezzanine space. The seller recently invested “significant capital” to update the property, according to JLL.
FAYETTEVILLE, GA. — Quality Technology Services (QTS), a data center owner and operator, has acquired 615 acres in Fayetteville, about 25 miles south of Atlanta. The Overland Park, Kan.-based firm plans to develop the world’s largest multi-data center campus on the site, according to CBRE. The square footage and construction timeline for the campus were not released. Tim Huffman and Mike Lash of CBRE represented the seller, the Fayette County Development Authority, in the deal. The duo also procured QTS, which acquired the assemblage for $153.8 million, or approximately $250,000 per acre. Atlanta’s data center market has seen strong demand as the market recorded a vacancy rate of 3.6 percent as of second-quarter 2022, according to CBRE research. The market is currently home to 249.5 megawatts (MW) of data center capacity, a 71.7-MW increase from the first half of 2021.
ALPHARETTA, GA. — Lincoln Rackhouse, the data center division of Lincoln Property Co., and Principal Real Estate Investors, the real estate investment arm for Principal Global Investors, have partnered to purchase a 185,000-square-foot data center. Originally built and occupied by cell phone giant Blackberry in 2009, the data center sits on a 38-acre site at 4905 N. Point Parkway in Alpharetta, less than two miles from the Avalon mixed-use development and about 25 miles north of Atlanta. The seller and sales price were not disclosed. The data center’s current capacity is 7 megawatts (MW) but is expandable up to 13 MW, and the site can accommodate a new ground-up data center that can support 30 MW of capacity. St. Louis-based Ascent will continue to provide facilities management, engineering and construction services to the site. Digital Crossroad and CBRE’s Atlanta-based data center solutions team will provide marketing and leasing services for the new ownership.
Bitzero to Redevelop Cold War-Era Missile Defense Site in North Dakota into Secure Data Center for $500M
NEKOMA, N.D. — Bitzero Blockchain Inc. has agreed to acquire the Stanley R. Mickelsen Safeguard Complex (SRMSC) in Nekoma, a tiny city of fewer than 50 residents approximately 130 miles south of Winnipeg, Canada. The Cavalier County Job Development Authority (CCJDA) is selling the property to Bitzero, which plans to redevelop the asset into a highly secure data center. The project costs, including the acquisition, are estimated at $500 million. Commonly referred to as “The Pyramid,” the SRMSC is a Cold War-era military installation which was built in 1970 to protect the nearby Grand Forks Air Force Base from potential attack from Soviet missiles. The Pyramid became operational in 1975, featured two different kinds of radar systems and data processing equipment, and controlled 30 anti-ballistic missiles that could be launched in case of attack. The main building features three-foot-thick concrete walls. The missile site was abandoned after just eight months in operation, when Congress voted to deactivate it. The missiles and equipment were removed, but the concrete structures remain on the landscape. The CCJDA has owned the site’s tactical area since 2017, but voted unanimously to accept Bitzero’s bid proposal after a presentation from CEO Akbar Shamji. Bitzero’s bid proposal for the site included a …
BOSTON AND NEW YORK CITY — American Tower Corp. (NYSE: AMT), a multitenant communications REIT, has agreed to sell a 29 percent stake in its data center platform to Stonepeak, an alternative asset management firm based in New York City. The deal, which comprises common and preferred equity from Stonepeak’s affiliated investment vehicles and debt commitments, is valued at $2.5 billion. The AMT data center portfolio consists of 27 data centers in 10 U.S. markets. AMT purchased Denver-based CoreSite Realty Corp. in a $10.1 billion deal that was announced last November. AMT will retain managerial and operational control, as well as day-to-day oversight of its U.S. data center business, and Stonepeak will obtain certain governance rights. The transaction is expected to close in third-quarter 2022, subject to customary closing conditions. “We are pleased to partner with Stonepeak in our U.S. data center business,” says Tom Bartlett, president and CEO of American Tower. “While this transaction supports the equity financing component for our previously completed CoreSite acquisition, it also creates a platform through which growth opportunities can be strategically evaluated and financed.” Andrew Thomas, managing director and co-head of communications at Stonepeak, says that AMT’s data center platform aligns with Stonepeak’s …
SPRINGFIELD, VA. — Finmarc Management, a real estate investment and management firm based in Bethesda, Md., has purchased an 11-building portfolio from Boston Properties in Springfield for $127.5 million. The portfolio spans 740,000 square feet of industrial, flex/office and data center space in one- and two-story properties. Situated near Fort Belvoir and I-95, the portfolio was 74 percent leased at the time of sale to tenants including ADT Security Systems, Avaya, SAIC, The Vomela Cos. and the U.S. General Service Administration (GSA). William Collins and Eric Berkman of Cushman & Wakefield represented Boston Properties in the transaction, and Finmarc was self-represented. Michael Zelin and Marshall Scanlon of Cushman & Wakefield, along with consultant Cliff Mendelson of Met Cap Advisors, arranged acquisition financing on behalf of Finmarc.
VERNON, CALIF. — Prime Data Centers has released plans for a three-story, 261,000-square-foot data center in Vernon. Additionally, the company will construct an electrical substation to serve the new site. The completed facility will deliver up to 33 megawatts of power to its tenants. The new carrier-neutral facility offers opportunities for tenants to obtain wholesale dark fiber in volume to all five of the central interconnection hubs in downtown Los Angeles: One Wilshire, 600 W. Seventh Street, 530 W. Sixth Street, 900 N. Alameda and 818 W. Seventh Street. The new facility will offer dedicated office, storage and staging options, as well as secure onsite parking. Completion is slated for as early as fourth-quarter 2023. Darren Eades of JLL handled the land parcel acquisition. Terms of the deal were not released.
ELK GROVE VILLAGE, ILL. — Prologis and Skybox Datacenters have completed a 189,000-square-foot data center at 800 E. Devon Ave. in Elk Grove Village, a suburb of Chicago. Named Skybox Chicago I, the speculative facility sits on a 10-acre site. The project can accommodate a single tenant or several users. Leasing efforts are underway. The project was the conversion of a vacant distribution center.
ROUND ROCK, TEXAS — Seattle-based developer and operator Sabey Data Centers will develop a facility in the northern Austin suburb of Round Rock that will have the capacity to produce up to 72 megawatts of power. The two-building development will be situated on a 40-acre site and will be primarily marketed to hyperscale cloud users. Preliminary sitework is underway, and Sabey plans to break ground in June and to deliver the facility in the first quarter of 2023.