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Server Farm Realty Sells High-Efficiency Santa Clara DC to Zayo
Server Farm Realty’s 3 MW data center in Santa Clara, California. (Photo: Server Farm Realty)

Server Farm Realty Sells High-Efficiency Santa Clara DC to Zayo

A strategically located, recently modernized facility that may not have had much activity in the past few years, is changing hands to become a telecom provider’s property.

One of the jewels in Server Farm Realty’s data center portfolio — a nearly 13,600 square foot facility in Santa Clara and a stone’s throw east of Levi’s Stadium and the convention center — has been sold to telecom infrastructure provider Zayo Group Holdings, the buyer announced Monday afternoon.

The facility, located at 5101 Lafayette Street, covers 26,900 gross square feet, with 3 MW of critical power, and delivering critical load capacity of 220 watts per square foot.  It’s constructed in a space that was originally built in 1984 to serve as a clean room.  SFR had been boasting the use of redundant hybrid air handlers in its cooling system, rendering it unnecessary to deliver mechanical cooling for most of the year.

In 2012, SFR told Data Center Knowledge it was leasing a good chunk of the facility’s space to an unnamed Fortune 500-ranking semiconductor company.  At present, it appears to share space with data center process management solutions provider Cranntech.

Zayo’s colocation group, zColo, already offers dark fiber-connected facilities throughout Santa Clara.  In a statement Monday, the firm’s COO characterized the acquisition as a perfect complement to its existing facilities and services.

Just last week, Zayo Group Holdings was the subject of a glowingly positive write-up by Goldman Sachs’ analyst Brett Feldman.  “In our view,” he wrote, “Zayo is among the most attractively valued providers of telecom infrastructure,” upgrading Goldman’s recommendation for Zayo stock to “buy.”  In the wake of that report, investment research firm Zacks upgraded its “most accurate” earnings estimates for Zayo stock.  The firm is scheduled to give its quarterly earnings report after the markets close Tuesday.

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