Sunnyvale data center lands buyer from New York

A data center facility located in Sunnyvale, California, was recently acquired by New York-based real estate firm Brookfield Properties for $90.3 million. The transaction, involving the 120,000-square-foot building, was finalized on May 13, according to documents filed with the Santa Clara County Recorder's Office. The seller was DivcoWest, a Bay Area real estate firm, which had originally purchased the property in 2017 for $50 million. DivcoWest declined to comment on the deal. The building's current tenant is Equinix, a global operator and owner of data centers. This acquisition highlights the increasing demand for data centers, largely driven by the expansion of artificial intelligence technologies that require significant digital processing capabilities. This growing demand has also spurred PG&E, the local utility company, to accelerate efforts to upgrade and expand its electrical infrastructure in the South Bay region and beyond. However, consumer groups have raised concerns that an overestimation of data center electricity needs could lead to higher utility rates for customers, potentially leaving them to bear the cost of 'stranded' assets if demand falters.