Equinix-Occupied Sunnyvale Data Center Sold to Brookfield for $90.3 Million
May 18, 2026
Equinix-Occupied Sunnyvale Data Center Sold to Brookfield for $90.3 Million
A data center facility in Sunnyvale, California, fully occupied by Equinix, has changed hands in a significant real estate transaction. The sale underscores the ongoing investor appetite for critical digital infrastructure assets, particularly those backed by long-term tenants in high-demand markets like Silicon Valley.
Brookfield, a global asset manager with a substantial data center portfolio, has acquired the property at 255 Caspian Drive from DivcoWest for $90.3 million, according to Santa Clara County property records cited by the San Jose Business Journal and Mercury News. The deal marks a notable cap rate shift from the previous sale just five years ago, when DivcoWest purchased the 120,000-square-foot building for $50 million in 2021.
The single-story facility is listed by Equinix as its SV4 data center, featuring 67,620 square feet of colocation space and an estimated 8 MW of critical power capacity, according to an online case study. Equinix has operated from the site since at least 2005, initially leasing from Mission West Properties, as indicated by a lease agreement filed in SEC archives.
DivcoWest, which no longer lists the facility on its website, has not commented on the sale. Property records show the building was originally constructed in 1978 and underwent a major renovation in 2009. Equinix, which runs a dozen data centers across Silicon Valley—including its most recent SV12x launched in January—has previously exited several legacy leased facilities in the region as it consolidates its footprint.
In a separate but related expansion move, Equinix recently bolstered its landholdings in neighboring San Jose. In February, real estate investment firm Kennedy Wilson sold six office buildings at 6800 Santa Teresa Blvd, 140 Great Oaks Blvd, and 6541 Vía Del Oro to an affiliate linked to Equinix for $51 million. These properties are adjacent to Equinix’s SV12 facility at 123 Great Oaks Blvd. Kennedy Wilson had acquired the buildings in 2020 for $53.5 million. Equinix has not commented on that transaction either.
The combined activity highlights a broader trend of colocation operators and investors recalibrating their real estate strategies in Silicon Valley, where land constraints and power availability are driving both acquisitions and divestitures of legacy assets.
Source: datacenterdynamics
