Digital Realty Trust made a big, highly anticipated announcement this morning. They plan to build a giant new data center out in Chicago in the South Loop of the Chicago Central Business District.
In other words, it’s right across the street from 350 E. Cermak, at 330 E. Cermak. 350 E. Cermak has been the king of the data center hill in Chicago for a long time, and Digital Realty’s new location will serve as a giant annex. Spanning 660,000 square feet across 12 stories and featuring 54MW of power, we aren’t talking about a small project here.
CenterPoint Properties is contributing the land and will be a joint venture partner in the project, while CBRE is already taking the product to market and has commenced pre-leasing space in it. They already have the permits and such in place to break ground and expect to be finished around 2 years after they do, but the timing of the project is still a bit fuzzy still.
What they really need, according to Data Center Knowledge, is a few big anchor tenants to reduce the project’s risk.
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Hopefully they pick up interconnection heavy retail. It’s nice to see this project, rumored for so long without a name, finally going somewhere. I also didn’t realize that hotel was going to block all of the western-bound microwave links.
There’s been construction at that site for probably a year or so already.
Correction: 660,000 square feet (not 660 sf)
Oops, fixed.
This is a low risk development. Anchor or not, demand for access to Cermak is high. Digital Reality will own the conduit fiber between the buildings and should make access to tenants in 350 pretty easy.
Hopefully they fix the lack of parking.