A big real estate company in California has just bought a data center building in San Jose for $9.5 million.
This move shows that investors are still very interested in data centers, especially with the growing demand for cloud services and artificial intelligence (AI).
Overton Moore Properties, a well-known real estate firm, bought the building in north San Jose, which is about 130,800 square feet, from Digital Realty, a major company in the data center business.
The deal was filed on December 20, 2024.
Data centers are becoming popular with investors because of the high demand for technology services like cloud computing and AI.
These services need lots of space and energy, which makes data centers a valuable investment.
In downtown San Jose, a new project is being planned to build thousands of homes next to data centers.
This project is set to start in 2025 and will use extra energy from data centers to power eco-friendly housing towers.
The partnership between global developer Westbank, PG&E, and San Jose city officials is working to make this happen.
The data center that Overton Moore bought was built in 1985. It’s not clear yet if the company plans to update the building or rebuild it.