DULLES, VA-Amazon is leasing a building on Route 28 North,called Severn May, that it plans to eventually use for its datacenter operations. The 125,000-square-foot building was acquired bya venture between Washington, DC-based PRP and Altus Realty threeyears ago from a subsidiary of EADS. Amazon plans to invest $60million in the building to transform it into appropriate space forits data center operations, a source tells GlobeSt.com.
As data center space becomes ever more scarce in the area, agrowing number of firms are investing in building out theoperations themselves. Microsoft, for example, is investing $499 million in the southern county ofMecklenburg to build a data center. It will be the largestinvestment here and create 50 jobs, according to Virginia Gov. BobMcDonnell.
At the same time, REITs and other real estate investors arebeginning to eye this asset class. Corporate Office PropertiesTrust is expanding into this area, havingrecently acquired a 233,000-square-foot datacenter known as Power Loft @ Innovation for $115 million. It plansto invest an additional $166 million to bring it up to fullcapacity.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
