South Bay tech data site is bought by big California real estate firm

SAN JOSE — A data center building in San Jose has been bought by a veteran California real estate firm in a sign of ongoing investor interest in these types of tech properties.

Overton Moore Properties, acting through an affiliate, has paid $9.5 million to buy a data center and cloud services building in north San Jose, according to documents filed on Dec. 20 with the Santa Clara County Recorder’s Office.

Digital Realty, a major player in data center properties, sold the building to the Overton Moore affiliate, the county records show.

The building totals about 130,800 square feet, according to Digital Realty regulatory filings with the Securities and Exchange Commission.

Data centers are deemed to be attractive investments partly because of the growing demand for an array of tech capabilities related to cloud services, networks and artificial intelligence.

In downtown San Jose, a veteran developer, utility titan and city officials have announced plans for a massive and ambitious effort to build thousands of homes next to data centers. Construction is slated to launch in 2025.

Global developer Westbank, PG&E and the city of San Jose have teamed up to speed the development of eco-friendly housing towers whose energy would be powered by surplus heat from nearby data centers.

The building that Overton Moore bought was built in 1985. It wasn’t immediately clear whether the new owner was planning to accomplish upgrades of the building or redevelopment of the site.