Colovore has bought a 29,100-square-foot data center building in Santa Clara for $37.2 million.
The locally based data center firm bought the two-story building at 3060 Raymond Street, the East Bay Times reported. The seller was San Francisco-based Ellis Partners.
The deal works out to $1,278 per square foot.
Ellis bought the industrial building in 2022 for $13.5 million, or $464 per square foot. The firm then turned the site into a 9.4-megawatt data center used to support artificial intelligence, cloud computing and other internet technologies.
While Ellis had obtained an $11.5 million construction loan at the time of purchase, the amount it invested in the data center makeover was undisclosed.
Colovore paid 48.8 percent above the $25 million Ellis had invested in the property three years earlier.
Prior to the renovation, Colovore had signed a lease for the building, built in 1974, for undisclosed terms. The company owns a similar data center next door at 1101 Space Park Drive.
As AI-driven infrastructure demands surge, data centers have become some of the most sought-after investments across North America, according to The Real Deal.
Last month, New York-based Related Companies announced it’s looking to raise up to $8 billion to develop data centers, starting in Ontario, Canada, with additional projects planned in Illinois, Missouri and Wyoming.
San Francisco has been riding the AI wave for years, fueling an office market rebound as AI firms snap up workspace.
Swig Company recently signed two AI tenants in SoMa, adding to last year’s 86 AI office leases in San Francisco. San Jose is following suit, with Santana Row emerging as an AI hub.
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