A San Francisco investment firm is spending $40 million on two data centers in west suburban Wood Dale, the latest in a flurry of tech real estate deals in the area.
Element Critical acquired the properties at 711 N. Edgewood Ave. and 341-361 Haynes Drive for a combined $18.5 million, according to DuPage County property records. The company plans to invest the rest of the money expanding and redeveloping the properties, which comprise 195,000 square feet of data center space and feature 15 megawatts of power capacity, according to a statement from the company.
Investors have been pouring money into data centers in recent years as the rise of cloud computing fuels demand for the space. The Chicago area, with its central location and strong telecommunications links, has attracted its share of the capital, driving up property prices and spurring development of new data centers. Last month, a joint venture including Los Angeles-based CIM Group paid $27 million for a South Loop data center. In September, one in Elk Grove Village sold for $119 million.
Founded in 2014, Element Critical now owns four data centers totaling 500,000 square feet, with other properties in Silicon Valley and northern Virginia.
“Element Critical is building a world-class data center platform and Chicago is the natural next step in our national expansion strategy,” Element Critical CEO Ken Parent said in the company statement.
A spokesman for the company did not immediately return a call. Element Critical bought the property at 711 N. Edgewood from Wayne, Pa.-based Sungard Availability Services, county records show. It bought the Haynes Avenue data center from a unit of El Segundo, Calif.-based Landmark Infrastructure Partners.