Summary: Serverfarm acquired a data centre in El Segundo, CA near Los Angeles that happens to be a very short distance from its corporate HQ. This is a 117.5k sqft, 22MW facility at 444 North Nash Street that was formerly owned and operated by T5 Data Centers. The data centre is said to be under-utilized and has tenants across hyperscale, healthcare, transportation and government. It has not been confirmed, but the facility is said to be home to the first AWS Local Zone deployment in Los Angeles. That would likely be the hyperscale customer referenced. The data centre fits with Serverfarm’s strategy of buying existing assets they can make more efficient (from a cost and sustainability perspective) and add capacity to the existing footprint. This gives Serverfarm inventory it can sell to existing customers without as long of a wait as end users, particularly hyperscale, can often face. Serverfarm likes underserved or markets just in the secondary tier and Los Angeles fits the profile. The asset has plenty of power, good connectivity, and is proximate to the airport and transportation links. The media and entertainment vertical presents upside as does gaming and technology.
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