Centersquare Pays $97M for Data Centers

November 19, 2025

Data Centers Investment News San Jose More West

The Silicon Valley assets total more than 43 megawatts.

Exterior shot of the data center at 2401 Walsh Ave. in Santa Clara, Calif. — Centersquare’s first data center campus in Silicon Valley is at 2401 Walsh Ave., and boasts 34.5 megawatts. Image courtesy of Yardi Matrix

Centersquare has purchased two data center properties in Santa Clara, Calif., for a combined $97 million, according to Santa Clara County public records.

Menlo Equities sold the properties through two separate transactions, for $55 million and $42 million.

The data centers are at 4650 and 4700 Old Ironsides Drive on 13 acres. The facilities total 124,400 and 90,139 square feet, respectively, according to Yardi Matrix.

Cyxtera, owned by Brookfield Infrastructure Partners, occupied and operated the campus. After the colocation operator filed for bankruptcy back in 2023, Brookfield purchased the company for $775 million, in a transaction completed in January last year, according to Data Center Dynamics. At the time, the new owner merged Cyxtera with its data center platform Evoque, creating Centersquare.

Now, Centersquare operates the two facilities as part of its campuses in Silicon Valley, according to its website. The company has 129.4 megawatts of power across four data center complexes located in Santa Clara and Sunnyvale, Calif.

The purchased property, dubbed SF02, is a campus with a 43.2-megawatt utility capacity, a 22.5-megawatt generator capacity and chilled water-cooling systems. Additionally, the carrier-neutral complex includes loading docks and meeting rooms.

Data center growth accelerates

As AI competitiveness in the country ramps up, so does data center demand, which is set to continue to grow despite power shortages. Construction activity is expected to remain strong in established markets, while developers and investors will also break ground in secondary metros, where power is conveniently available, a recent report by PwC and the Urban Land Institute shows.

Recent big moves in the industry include The Artificial Intelligence Infrastructure Partnership’s $40 billion agreement to purchase all equity in Aligned Data Center. The consortium of investors, including Microsoft, Nvidia and BlackRock, is looking to complete the acquisition by the first half of next year.

In Texas, Google intends to spend $40 billion through 2027 for cloud and AI infrastructure, with plans including the development of three new data center campuses. This move is part of the company’s Investing in America initiative and represents its largest investment in any state in the country, potentially turning Texas into a major U.S. powerhouse for tech and AI.