CoreSite to Expand Project

January 24, 2011
By Barbra Murray, Contributing Editor

The outline of CoreSite Realty Corp.’s data center campus in California’s Silicon Valley will increase in size from 229,600 square feet to 496,300 square feet now that the city of Santa Clara has approved the requisite entitlements for the $350 million compound.

With development rights secured for the Santa Clara campus, three new data centers and an electrical substation will join CoreSite’s existing 50,000-square-foot data center at 2901 Coronado Drive, a 10-month-old facility leased in its entirety to a single tenant. Additionally, the building currently under construction one block away at 2972 Stender Way will encompass 101,000 square feet instead of the previously intended 50,400 square feet. The property is designed to achieve LEED Gold certification, a goal that dovetails with the current trend in the data center market. As per a study released by EL Insights, the green data center market will increase 29 percent to just over $13.8 billion by 2015 from current total of approximately $3.8 billion.

CoreSite senior president of data centers Billie Haggard said that the campus demonstrates the firm’s commitment to energy-efficient design.

CoreSite’s expanded offerings in Santa Clara will likely attract a great deal of attention among prospective tenants for a few reasons. “The City of Santa Clara stands out due to its proximity to Silicon Valley users, unmatched connectivity and lower power costs through municipally owned Silicon Valley Power,” according to a report by commercial real estate services firm Grubb & Ellis Co.

CoreSite is financing the expansion of its Santa Clara campus with proceeds from its $270 million initial public offering, which closed in September 2010.