Sabey Begins Vertical Construction on 120MW Data Center Campus in Umatilla, Oregon

Sabey Data Centers has officially started vertical construction on its new data center campus in Umatilla, Oregon, marking a major milestone for the project. The company announced this week that it is “going vertical” at the SDC Umatilla campus, transitioning from planning to physical construction.

The move is significant for the region’s digital infrastructure landscape, as the campus will add substantial capacity to the Pacific Northwest, a key hub for cloud and AI workloads. “Watching the first steel go up is always a significant moment because it turns years of planning, engineering and hard work into something you can finally see,” said Tim Mirick, president of Sabey Data Centers. “We are excited to build here, excited to become part of this community, and committed to serving our customers and this region for many years to come.”

Sabey first acquired 60 acres of land along Beach Access Road in Umatilla in 2023. At full build-out, the site will total 120MW of capacity across two buildings. The company has previously indicated that the first 12MW phase is expected to come online by 2027. Umatilla, located in northern Oregon near the Washington border and about 200 miles east of Portland, is emerging as a strategic location for data center development due to its access to power and fiber connectivity.

Local officials welcomed the investment, highlighting its economic and environmental benefits. State Representative Bobby Levy commented, “The construction of this new data center is an exciting investment in Northeast Oregon and a strong vote of confidence in our communities. Facilities like this keep our hospitals, schools, and small businesses connected while creating new economic opportunities.” Levy specifically praised Sabey’s use of a closed-loop cooling system, noting it demonstrates that “innovation and responsible resource stewardship can go hand in hand.”

Sabey Data Centers operates a broad portfolio across the United States, with sites in operation or development in Quincy, Seattle, and East Wenatchee, Washington; New York City; Austin, Texas; Umatilla, Oregon; Indianapolis, Indiana; and Ashburn, Virginia. The operator currently has approximately 251MW of operational capacity across roughly 4 million square feet, and according to its owners, it could triple that capacity by 2036 on existing landholdings.

The company is jointly owned by real estate firms Sabey and National Real Estate Advisors, and recently secured investment from Ares Management Corporation. TJ Hofheimer, managing director of portfolio and asset management at National Real Estate Advisors, said, “At National, we focus on investments supported by strong fundamentals, experienced teams and the potential for long-term value creation. We believe SDC Umatilla reflects those qualities, and we appreciate the collaboration among Sabey, local leaders and community stakeholders that has helped advance the project to this stage.”