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Blackstone Buys Power-Rich Sunnyvale Nvidia Plant
Blackstone bought a 134,000-square-foot manufacturing plant in Sunnyvale for $95 million. Nvidia is a tenant in the building and will stay where they are. The property at 350 Cobalt Way was built in 1978 and upgraded in 2022. SFF Realty Partners was the seller.
The Silicon Valley Business Journal reports the facility has more than ample power: nearly 10 megawatts. R&D and advanced manufacturing companies are demanding more power than Silicon Valley can readily add, giving an advantage to buildings that already have substantial electrical capacity. Investors and tenants are pursuing those properties.
OpenAI is closing in on a lease for another power-rich property. The company is pursuing a 70,000-square-foot building at 2950 Zanker Road in North San Jose with about 19 megawatts of electrical capacity.
Blackstone has been investing in infrastructure that supports AI. Chief Financial Officer Michael Chae told investors this month that investments in data centers, power and other digital infrastructure have contributed significantly to Blackstone’s infrastructure business.
- ◦Sale/Acquisition
