Terremark Buys Properties in Santa Clara
Terremark (TMRK) has bought two properties in Santa Clara, Calif. for the West coast phase of its expansion plan, the company said today. Terremark paid $12.25 million to acquire 2970 and 3000 Corvin Drive, two properties adjacent to an existing Terremark data center at 3030 Colvin Drive. The sellers were an investment group that included Dan Pearlman JV LLC, BDP Partners, EJLJ Mathews Family Partners and EGP Partners, which bought the sites in 2000.
The 3.05 acre properties include a 67,376 square foot building with one tenant, Equant Inc., which is terminating its lease and vacating the property. Equant will pay Terremark a $2.7 million fee to terminate its 24,000 square foot lease. Equant, now known as Orange Business Services, is an IT subsidiary of France Telecom.
The purchase is part of a broader expansion strategy outlined by Terremark in June 2006, which includes new data centers in northern Virginia and Silicon Valley. Terremark has begun construction on a 30-acre site in Culpeper County, Virginia, which may ultimately house as many as five data centers spanning 250,000 square feet of space.
Terremark said last November that it had identified a site for its Silicon Valley expansion. It signed a purchase agreement for the two Santa Clara properties in March, but didn’t close the transaction until Sept. 4.
Terremark won’t begin construction at 2970 and 3000 Corvin until late 2008, according to spokesman Xavier Gonzalez, who said the first phase of construction will include a 50,000 square foot data center.
The deals also continue an active year for the data center market in Santa Clara, which has been perhaps the most active site in Silicon Valley for the development of mission-critical facilities. Recent milestones include:
- In July Microsoft paid $200 million to purchase two leases from Savvis in Santa Clara properties owned by Digital Realty Trust.
- In June Equinix said it will invest $41 million to expand its existing Santa Clara center to accommodate an additional 1,100 cabinets.
- In June Pelio & Associates announced plans for a LEED-certified data center at 1500 Space Park Drive in Santa Clara.
- In May Behringer Harvard paid $70 million to purchase the Santa Clara Tech Center. One of three buildings will be developed as a data center.
Paolo GorgoPosted September 12th, 2007
This article gives an update on a power related issue arisen because of the new Terremark Culpeper data center (Virginia).
>>Dominion plans to build a second 115-kilovolt line on taller towers that would feed into a new REC substation that would distribute the power to customers.
The new lines would extend 5.2 miles from Stevensburg to East Chandler Street and physically impact farms, historic sites, Culpeper National Cemetery and area homeowners. The proposed substation would locate off McDevitt Drive, adjacent to the town’s wastewater treatment plant.
The board unanimously approved REC’s substation request. In a 5 to 2 vote it tabled Dominion’s transmission line request. Supervisors Steve Nixon (West Fairfax) and Larry Aylor (Cedar Mountain) dissented because the tabling would delay Dominion’s ability to serve Terremark Worldwide Inc. on time.
The high-tech data center, which plans to open next summer, could require 20 times more energy than an average office building. With present power loads plus five to eight more megawatts needed for Terremark’s first phase of operations, Dominion says the high-tech business would not open on time with a 30-day delay.
Catalpa Supervisor Sue Hansohn asked why the applicants didn’t approach the county sooner.
Robert Ellis, of REC, said the companies worked as quickly as they could once they found out Terremark was locating to Culpeper. Without it, the need for more power would not come for another year.
“If Terremark’s delayed 30 days, they’re delayed 30 days,” Hansohn said.