Data center operator grabs San Jose office and commercial buildings

"Through an affiliate, Equinix paid $51 million for six buildings at 6800 Santa Teresa Blvd., 140 Great Oaks Blvd., and 6541 Via Del Oro, documents filed on Feb. 24 with the Santa Clara County Recorder's Office show. Kennedy Wilson, a real estate investment firm, was the seller in the deal."

"In January, an Equinix-owned data center at 123 Great Oaks Blvd. added 20 megawatts of power, which brought the site's total to 40 megawatts. The addition of the electricity supply to the site made the Equinix data center the first project to land increased energy under a deal between San Jose and PG&E."

"As tech companies chase dreams of an artificial intelligence future, the quest has created demand for huge data centers and plenty of electricity to accommodate the vast digital processing needed for AI-linked computations."

Equinix, a major data center provider, acquired six buildings in South San Jose for $51 million through an affiliate, purchasing from real estate investment firm Kennedy Wilson. The properties are located at three addresses: 6800 Santa Teresa Blvd., 140 Great Oaks Blvd., and 6541 Via Del Oro. Kennedy Wilson had purchased these buildings in 2020 for $53.5 million, with tenants currently occupying some spaces. An adjacent Equinix data center at 123 Great Oaks Blvd. recently added 20 megawatts of power capacity, reaching 40 megawatts total and becoming the first project to receive increased energy under a San Jose and PG&E agreement. The acquisition reflects ongoing tech industry demand for data center capacity driven by artificial intelligence development and the substantial electricity requirements for AI-related computing.

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