Data center firm buys three South Bay tech buildings for $100 million

SANTA CLARA — A prolific developer of data centers nationwide has paid $100 million for three South Bay tech buildings, including one property where a new hub for data processing has been proposed.

CoreSite, acting through an affiliate, bought three buildings in Santa Clara from GI Partners, a private equity and investment firm that paid $79 million in cash in 2021 for the properties, documents at the Santa Clara County Recorder’s Office show.

The three buildings have addresses of 2805 and 2855 Bowers Ave., and 2710 Walsh Ave., according to the property documents.

The deal means CoreSite paid 26.6% more for the three buildings than GI Partners, suggesting that buildings with the potential for data center development can spur interest from real estate players despite a weak Bay Area office market.

At the time GI Partners owned the three buildings, the San Francisco-based investment firm sought to develop a data center totaling 244,100 square feet at 2805 Bowers, city planning documents show.

The project would demolish the existing building on the site. Santa Clara officials approved the proposed development in 2024.

“CoreSite data centers are colocation facilities where enterprises of all types and sizes locate the servers and networking equipment they rely on to communicate, store and process data, develop new products and services, and conduct business,” CoreSite states on its website.