Novva Data Centers, a wholesale data center developer and operator backed by CIM Group, today announced that it has acquired an existing 6-megwatt data center and 37 acres of land in Colorado Springs, a city 65 miles south of Denver, Colorado, for $38.5m. Additionally, Novva plans to expand the campus to 30 megawatts of power capacity as part of a $200m+ investment program.
Novva Data Centers’ equity sponsor, CIM Group, are owners, operators, lenders, and developers of real estate and infrastructure. CIM Group acquired its interest in NOVVA Data Centers in 2019.
Novva Data Centers – Colorado Springs
Novva Data Centers has acquired an existing facility with 6 megawatts designed capacity and 190k sqft across a two-building campus. Specifically, the data center located at 650 Sybilla Lane in Colorado Springs, was completed in 2005 and spans 122k sqft. Additionally, Novva’s acquisition included a 13k sqft generator building and a 55k sqft industrial building. As part of this data center acquisition, Novva secured an anchor tenant for the facility.
Notably, Novva can re-purpose the 55k sqft industrial building for its future data center expansion. Finally, the company purchased 740k sqft of land directly to the west of the property which can be used for additional development projects.
Expansion Plan
Through $200m+ of total investment, Novva Data Centers plans to expand the Colorado Springs campus to 30 megawatts of power capacity, with an additional 250k sqft. Also, the company intends to shift to 100% renewable energy and waterless cooling at the site.
Management
Novva Data Centers is led by its CEO, Wes Swenson, who was formerly the CEO of C7 Data Centers. Notably, C7 Data Centers was a data center operator in the Salt Lake City, Utah market. Ultimately, C7 Data Centers was sold by its owner, Signal Peak Ventures, to DataBank in Q1 2017.
Colorado Springs – Market Overview
Colorado Springs is the second largest city in Colorado, having robust fiber connectivity and minimal natural disaster risk. Additionally, Colorado Springs offers reliable and inexpensive power at utility rates of less than $0.05 per kWh. At the same time, the city is undergoing a significant shift away from coal, towards solar energy.
Novva Data Centers – Overview
Novva Data Centers’ broader goal is to serve the Western United States with large capacity data centers. To this end, Novva is building its first data center, through a $1bn hyperscale campus, in West Jordan, Utah.
West Jordan, Salt Lake City, Utah – Data Center
Novva Data Centers is currently constructing a campus in West Jordan, a suburb of Salt Lake City, Utah. Indeed, the facility, which is located at 6477 Wells Park Road, West Jordan, Utah will open in September 2021. Upon completion, Novva claims that this data center campus will be the largest in the state of Utah.
Novva is building its West Jordan data center over four phases on a site spanning 100 acres of land. At full build-out, the West Jordan facility will comprise 180 megawatts of power capacity across 1.5 million sqft of space.
Transaction Advisors
JLL Capital Markets’ team based in Phoenix worked on behalf of the undisclosed seller.
