Northern Virginia has become the top data center market in the US, with Prince William County alone recently announcing it has surpassed 3 million square feet of data center space.

Earlier this year JLL reported that Northern Virginia now has almost double the demand capacity for Silicon Valley, following a year of astounding growth.

A year ago, Northern Virginia had roughly 37 megawatts in absorption for data center capacity (Roughly one megawatt equals 150 square feet of data center space) and it finished 2015 with 62 megawatts. At that point, 62 megawatts represented the most demand seen in any market.

Until mid-2016 that is. In June, Northern Virginia had reached 78 megawatts of net absorption for data center capacity and by the end of September — four months later — that number has grown to 105 megawatts.

Carter Validus Mission Critical REIT II, however, is not limiting its investment activities to the Commonwealth. In October it acquired the 288,000-square-foot building housing the AT&T Hawthorne Data Center, in Hawthorne, Calif., for approximately $79.5 million.

McLEAN, VA–Carter Validus Mission Critical REIT II has expanded its footprint in the red-hot Northern Virginia data center market. It has closed on a two-asset portfolio of colocation data center properties for $85 million. The REIT did not disclose the seller but a source tells us that it is the AFL-CIO.

The first asset, Mclean I, is a two-story colocation data center facility totalling 65,794 total square feet and is 94.9% leased with a 16.5-year remaining term. The major tenant in this building is a global telecommunications company.

McLean II is a three-story colocation data center facility totaling 62,002 total square feet. It is fully leased with an approximately 7.5-year remaining term. PAETEC Communications, a Windstream company, is the major tenant in this building.

Northern Virginia's Blazing Pace

Northern Virginia has become the top data center market in the US, with Prince William County alone recently announcing it has surpassed 3 million square feet of data center space.

Earlier this year JLL reported that Northern Virginia now has almost double the demand capacity for Silicon Valley, following a year of astounding growth.

A year ago, Northern Virginia had roughly 37 megawatts in absorption for data center capacity (Roughly one megawatt equals 150 square feet of data center space) and it finished 2015 with 62 megawatts. At that point, 62 megawatts represented the most demand seen in any market.

Until mid-2016 that is. In June, Northern Virginia had reached 78 megawatts of net absorption for data center capacity and by the end of September — four months later — that number has grown to 105 megawatts.

Carter Validus Mission Critical REIT II, however, is not limiting its investment activities to the Commonwealth. In October it acquired the 288,000-square-foot building housing the AT&T Hawthorne Data Center, in Hawthorne, Calif., for approximately $79.5 million.