As its market cap approaches $3 trillion, AI chip titan Nvidia continues to grow its Silicon Valley real estate footprint exponentially.
Last week, the company added a 10-building, 13-acre business park on the south side of Walsh Avenue in Santa Clara in an all-cash deal for $123 million, SiliconValley.com reported.
The property, located on San Tomas Expressway across from Nvidia’s main headquarters, is 251,000 square feet and includes offices and flex warehouse space.
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The acquisition caps a 12-month expansion binge that has included property purchases and large leases. The deal-making began in May 2024, when Nvidia paid more than $373 million in a cash deal to buy out its landlord and assume ownership of its headquarters complex in Santa Clara.
That transaction included eight buildings on a site bounded by Central Expressway, Scott Boulevard, Walsh Avenue and San Tomas Expressway, a campus that the chip maker has occupied since 1998. The HQ acquisition also included 2M square feet of development rights.
In December, the company purchased another four buildings on San Tomas Expressway from affiliates of The Sobrato Organization. Terms of the acquisition were not disclosed. Nvidia is also leasing a three-story office and research facility encompassing more than 100,000 square feet in north San Jose at 300 Holger Way.
In addition to buying and leasing, the chip giant built and opened two office buildings encompassing more than 1.2M square feet near its headquarters. The construction began in 2018 and was completed in 2022.
According to a report in the San Francisco Standard, the Santa Clara campus Nvidia purchased last week is leased to a variety of tenants, including a community center, a fitness studio and a vocational school.
Citing a source familiar with Nvidia’s real estate dealings, the newspaper said the company is likely pursuing a “covered land play,” buying buildings that can be leased for rental income in the short term, while advancing its development into other uses.
The newly acquired buildings will likely be demolished over time to make way for data centers or a semiconductor fabrication plant, the report said.
Last month, Nvidia committed $500 billion to expand its chip manufacturing in the U.S. Currently, most of the company’s AI chips are made in Taiwan at TSMC, the leading global chip fab.
The generative AI boom has been driving office leasing activity across the nine-county Bay Area.
In December, cloud-based data platform Snowflake announced this month that it will sublease a 773K square foot campus in Menlo Park from Meta, the largest office lease in the Bay Area region in nearly 15 years.
The AI data player, which has more than doubled the size of its workforce in the past two years, is taking over a four-building campus at 125-135 Constitution Drive and 100-150 Independence Drive, part of the Menlo Gateway project owned by Bohannon Cos.
Cushman & Wakefield has projected that the generative AI office footprint in the Bay Area will increase by 200% over the next 24 months.
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