The AI buildout in the South Bay just racked up another big receipt. A New York buyer has paid about $90.3 million for a fully leased data center at 255 Caspian Drive in Sunnyvale, according to county filings. The single-story Moffett Park building spans roughly 120,000 square feet and is fully leased to Equinix, turning it into a plug-and-play income machine for investors hungry for AI and cloud capacity. The sale, recorded this month, is the latest sign of how much buyers are willing to pay for ready-made computing infrastructure in the region.
Documents filed yesterday with the Santa Clara County recorder’s office list Brookfield Properties as the purchaser and confirm the $90.3 million price, as reported by The Mercury News. County records reviewed by reporters show the transfer and recorded deed among recent public filings.
The building and its tenant
Property details from DivcoWest describe 255 Caspian Drive as a roughly 119,756-square-foot facility that was renovated in 2009 and is 100 percent net-leased to Equinix. The Equinix SV4 page lists the same Sunnyvale address and lays out the building’s technical and colocation specifications, underscoring that Brookfield is buying into an already humming operation rather than a ground-up redevelopment project.
Why investors are paying up
With AI models growing larger and cloud workloads multiplying, purpose-built data centers have become some of the hottest industrial real estate around. Stabilized colocation sites with credit tenants are especially prized, since they deliver immediate cash flow instead of years of construction risk. As reported by The Mercury News, AI-driven demand and proximity to major network hubs are helping push up valuations for properties like the Caspian Drive building.
Power and local concerns
Utilities are already bracing for what all that computing power means for the grid. In its April earnings release, PG&E said roughly 4.6 gigawatts of advanced customer data-center projects in its service territory are in final engineering, highlighting the scale of expected load growth.
Consumer advocates and groups such as The Utility Reform Network argue that a rapid buildout of data centers could ratchet up pressure on electricity rates. They are calling for policy safeguards that shield households and push developers toward cleaner, more efficient projects.
What comes next for Sunnyvale
The deal drops a specialized industrial asset into the hands of a buyer that has publicly cast AI infrastructure as a core strategy, blending real estate and energy solutions for large computing tenants. Reporting from CoStar notes that Brookfield leadership has talked about pairing on-site generation and renewable energy with its property holdings as part of that approach.
For Sunnyvale, the transaction is another indication that the South Bay’s industrial landscape is being reshaped by the economics of AI compute. It is a reminder that local planners and utilities will have to keep up not just with land needs but with the growing appetite for power that comes with them.
