CoreSite Acquires Silicon Valley Trio for $100M

CoreSite's acquisition of three properties in Santa Clara, California, from GI Partners for $100 million represents a strategic move to expand its data center footprint in a key market. The properties, already entitled for a 72-megawatt data center redevelopment, offer CoreSite a potential fast-track entry or expansion opportunity in Silicon Valley. While CoreSite has not confirmed its intentions regarding the redevelopment, the acquisition provides optionality for future growth, capitalizing on the increasing demand for data center capacity. GI Partners' successful repositioning of the properties, acquired in 2021 for $79 million, demonstrates the value creation potential in identifying and entitling sites for data center development. American Tower's involvement as an investor further underscores the attractiveness of the data center sector. The deal is notable for its location in the highly competitive Silicon Valley market, where land and power are scarce and expensive. The 72-megawatt potential capacity is significant, reflecting the scale of modern data center deployments. The transaction also highlights the continued interest from institutional investors, such as GI Partners and American Tower, in the data center space. CoreSite's acquisition suggests a bullish outlook on future demand and a willingness to invest in strategic locations to meet customer needs.