SAN JOSE — A north San Jose building that includes a data center has been bought by a veteran California real estate firm in a sign of ongoing investor interest in similar types of tech properties.
Overton Moore Properties, acting through an affiliate, paid $9.5 million for the site, according to documents filed on Dec. 20 with the Santa Clara County Recorder’s Office.
Digital Realty, a major player in data center properties, sold the building to the Overton Moore affiliate, county records show. Built in 1985, it totals about 130,800 square feet, according to regulatory filings with the Securities and Exchange Commission.
It’s not immediately clear if the new owner is planning to perform upgrades of the building or redevelop the site.
Data centers are deemed to be attractive investments because of a growing demand for cloud, network and artificial intelligence services.
In downtown San Jose, veteran developer Westbank, PG&E and city officials previously announced plans for a massive and ambitious effort to build thousands of homes next to data centers.
The three players have teamed up to speed development of what are expected to be eco-friendly housing towers whose energy would be powered by surplus heat from nearby data centers. Construction is slated to start in 2025.
Originally Published: December 23, 2024 at 5:30 AM PST