Data center development on the rise
One of the largest data centers ever proposed for Silicon Valley is breaking ground in Santa Clara.
Washington, D.C., real estate development company Dupont Fabros Technology Inc., a newcomer to the region, has begun construction on the first phase of a proposed 600,000 square-foot complex at 555 Reed St.
The project, with an estimated $1 billion building value at completion, is a striking example of the global construction boom in data centers — fortress-like structures that house thousands of servers. That boom is helping drive good times for valley contractors who specialize in these projects.
Construction values for the complicated facilities can reach $1,000 a square foot, excluding the cost of the building shell. In comparison, a high-quality Silicon Valley office costs less than half that sum, including the cost of the land.
