News Summary
Principal Asset Management has sold a data center for $253 million, significantly increasing its value from the initial investment of $63.6 million made three years ago. The sale highlights the booming demand for data centers in the Greater Atlanta area, with enhancements increasing its power capacity from 4.05 megawatts to 15.2 megawatts. The facility is currently leased by major clients in the financial services and computing sectors, and a competitive landscape in Atlanta continues to drive further opportunities for investment in data centers.
Alpharetta, Georgia – Principal Asset Management has successfully sold a data center for $253 million, marking a remarkable increase in value over the course of three years. This sale, finalized this month, showcases an impressive appreciation from the firm’s initial investment of $63.6 million, made in August 2022 through a partnership with Lincoln Rackhouse.
The sale price reflects a nearly fourfold increase from the original acquisition cost, highlighting the robust demand and escalating values in the data center market, particularly in the Greater Atlanta area. The property, formerly known as the Ascent Data Center, was established in 2009 specifically for a telecommunications company.
During Principal’s ownership, significant enhancements were made to the data center. Its power capacity increased substantially from 4.05 megawatts to 15.2 megawatts, enabling it to support the growing needs of its tenants. Currently, the facility is home to two major clients: a Fortune 100 financial services firm and a high-performance computing company.
The Greater Atlanta area has emerged as a front-runner in the U.S. data center market, achieving net absorption of 705.8 megawatts in 2024 alone, according to CBRE. The market has continued to thrive, with an additional 280.5 megawatts absorbed in the first half of the current year. This unprecedented growth reflects a total absorption of 986.3 megawatts within a year, enough to power approximately 800,000 typical American households.
Strategic Growth in Data Center Sector
Devin Chen from Principal Asset Management noted that the firm’s strategic focus on asset selection and value enhancement enables them to capitalize on markets with substantial growth potential. The data center site also offers additional land for future expansion, positioning it for further development as demand for data services increases.
Alpharetta’s Data Center Landscape
Alpharetta ranks among the largest data center markets in Atlanta, attracting technology companies due to its strong connectivity and proximity to essential digital infrastructure. The local zoning regulations favor data center developments, allowing for smoother permitting processes compared to other potential sites in the region that may face community resistance.
The property at 4905 North Point Parkway, which sits on 39 acres, boasts a design initially tailored for telecommunications use and comes equipped with substantial existing infrastructure. The data center sale to GI Partners underscores the rising demand within the sector, driven in part by the accelerating adoption of artificial intelligence technologies.
Competitive Market Dynamics
Market dynamics in Atlanta indicate that any new data center construction is quickly leased, underscoring the competitive landscape for data center facilities in the region. Principal Asset Management continues to see robust opportunities in this sector and plans to target high-quality, strategically located assets for future investments.
Deeper Dive: News & Info About This Topic
- Data Center Dynamics: Principal Sells Data Center in Alpharetta, Georgia
- Encyclopedia Britannica: Data Centers
- CoStar: Investor Principal Scores 300% Return on Georgia Data Center Sale
- Google Search: Data Center Market Atlanta
- Data Center Dynamics: Lincoln Acquires Data Center in Alpharetta, Georgia
- Google Scholar: Data Centers Alpharetta
- WSBTV: Alpharetta Land Value Increase
- Google News: Alpharetta Data Centers
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