Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN JOSE, CA-Locally based Fortune Data Centers will open the second phase of its “green” data center here within six months. The expansion is underway because its first phase, completed early this year and containing 43,000 square feet of fully powered IT floor space in a 78,000 square foot building, is at 100% capacity, according to Fortune Data Centers CEO John Sheputis. The new building will total approximately 60,000 square feet and contain approximately 35,000 square feet net rentable.

Sheputis tells GlobeSt.com that in addition to the expansion he is in the planning process for a couple of other developments in major West Coast markets. “Despite a tough economic climate, demand for data center space continues to be a bright spot,” he says. “To have a facility of this size fully leased in such a short time period should confirm the market strength of Silicon Valley.”

Dan Golding, research director for Tier 1 Research says the co-location market is extremely strong for wholesale datacenter capacity, with the Silicon Valley being “one of the most under-supplied regions of the U.S., with datacenter demand exceeding supply for the past four years” in part due to tight credit markets making construction financing hard to secure.

“The few large, high quality datacenter projects on the market are in great demand from both enterprises and Internet content providers – particularly if they are energy efficient, which makes them less expensive to operate,” Golding says.

Located at 2001 Fortune Drive, Fortune’s Phase 1 data center, its only data center, uses 30% less energy than the industry average. Sheputis says he’s confident the added capacity from phase two “will not only lower tenant operating costs, but also…lower power costs for our tenants.”

The names of the tenants are not being released by the players involved. MMC Technology Inc., a subsidiary of computer disk drive leader Maxtor that manufactures recording platters utilized in magnetic disk hard drives, says it operates out of the building. The lease rates are being held close to the vest as well but can generally said to be comparable to Digital Realty Trust’s turn key data center space, which rents for approximately $160 per square foot per year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.