Global Data Center Operator
01 The Opportunity
Cushman and Wakefield was retained by a global data center operator to assist in the selection of a site for a new data center. The client was looking within a specific geography for vacant land and/or an existing building that could be demolished or retrofitted to be used as a data center.
- Client requirement to remain confidential to prevent unnecessary land value inflation.
- Client required ownership of site and was hesitant to consider alternative deal structures (build to suit, land-lease of joint venture).
- Specific geographies targeted consisted of:
- significantly built out suburban areas with few truly greenfield opportunities.
- small lots requiring negotiation with multiple parties to acquire the desired acreage.
- little to no “on market” properties.
- situations where availability rates were below 1.5% meaning significant competition incurred when large industrial properties became available.
- further limited availabilities due to access to power and fiber.
- large parcels of land zoned agricultural or constrained by green belt regulations or environmental issues requiring longer lead
02 The Solution
- Comprehensive research done in the region.
- Mapped and identified ownership of all large land and industrial parcels in the area (both “on” and “off”).
- Overlaid electrical power and fiber information to further qualify potential sites.
- Contacted all land/industrial owners with characteristics to unearth off market transactions.
- Worked with multiple site owners for potential assembly of land sites.
- Worked weekly with client to create and update a short list of targeted options with multiple contingencies for each preferred site to develop and maintain negotiating leverage.
- Continually followed up with landowners to sustain momentum and develop leverage and sense of urgency.
03 The Results
- Cushman & Wakefield identified a site owned by a proven
market leader in Canadian development and
construction formerly used as a pharmaceutical
facility. The site was in a desirable location,
included excess land and had the potential for
a partial retrofit for a data center facility. Cushman & Wakefield introduced the two parties and assisted with the
negotiation of a joint venture agreement.
- The data center operator entered into a joint venture and leveraged the Canadian development company’s 30 years of experience and more than $4 billion in developed assets within Ontario to complete its first international expansion and develop a 56 MW data center campus in Toronto, Ontario.
Meet the team
Ericsson • Data Center
Building disposition for a 14 MW newly built data center in Quebec.