Sunnyvale Data Center Sells for $90M

Brookfield Properties has paid $90.3 million for a Sunnyvale data center leased to Equinix, according to documents filed May 13 with the Santa Clara County Recorder’s Office. The property is at 255 Caspian Drive in Sunnyvale’s Moffett Park area, a long-established cluster for digital infrastructure and office campuses. (mercurynews.com) Public reporting and property marketing materials identify the building as roughly 120,000 square feet and fully leased to Equinix. The sale puts a New York-based buyer into a Silicon Valley asset that already has a tenant, power infrastructure and operating history. (divcowest.com) ### Which building changed hands? 255 Caspian Drive is marketed by Equinix as its SV4 data center in Silicon Valley. (equinix.com) Equinix’s site lists the address as a carrier-neutral facility in Sunnyvale, and DivcoWest’s property page describes it as a 119,756-square-foot, single-story data center. DivcoWest’s listing says the property was built in 1978, renovated in 2009 and is “100% net leased” to Equinix. That means Brookfield bought an income-producing building with an existing tenant rather than a vacant redevelopment site. ### Who bought it, and who stays in the building? Brookfield Properties was the buyer named in the filed documents cited by The Mercury News. (mercurynews.com) The seller was DivcoWest, a Bay Area real estate investment firm, according to the same report and separate market coverage. Equinix remains the tenant at the site. Equinix’s own facility page continues to list SV4 at 255 Caspian Drive, and DivcoWest’s marketing materials describe the lease as fully in place. (equinix.com) ### Why is a leased data center drawing this kind of price? The $90.3 million price reflects a market that has been rewarding operating data centers with established tenants, according to property coverage of the deal. (divcowest.com) The Registry reported Brookfield paid an 81% premium to the seller’s 2017 basis, underscoring how much values have risen for stabilized digital infrastructure in Silicon Valley. (mercurynews.com) Equinix is one of the largest data center operators in the world, with 273 locations in 36 countries, according to its newsroom. That scale matters to investors because the tenant is not a startup project still trying to secure customers. (equinix.com) ### Where does AI fit into this sale? PG&E said on April 23 that advanced customer data center projects in its service area now total about 4.6 gigawatts in final engineering. The utility said each additional 1 gigawatt of new data center load could help lower monthly electric bills by 1% or more “under the right conditions.” (news.theregistrysf.com) The Utility Reform Network and California lawmakers have framed the same buildout differently. Senator Steve Padilla said in January that California families should not “foot the bill” for Big Tech data centers, and TURN has argued regulators should shield households and small businesses from new transmission and infrastructure costs tied to data center expansion. (newsroom.equinix.com) ### What happens next on the electricity question? The California Public Utilities Commission opened a rulemaking in April 2026 that will examine electric rate design for data centers and other large transmission-connected loads, according to a summary by law firm Hanson Bridgett. The proceeding is expected to shape how utilities assign costs as more large-load projects move from planning to construction. (investor.pgecorp.com) In Sacramento, Senator Padilla introduced Senate Bills 886 and 887 on January 13, 2026, to address ratepayer protections and incentives for cleaner data center development, his office said. At 255 Caspian Drive, the nearer-term next step is simpler: Brookfield becomes landlord, and Equinix keeps operating SV4 at the Sunnyvale address. (sd18.senate.ca.gov) (hansonbridgett.com)