South San Jose is poised to become an even more prominent hi-tech corridor in coming years. Right now, the area pales when compared to Santa Clara in size and scope of data centers. Yet, a recent announcement by Equinix that it has closed a deal to purchase property on Great Oaks Boulevard confirmed that San Jose wants to increase its stature over the coming years.
The good-natured rivalry between the two California cities proves a boon for both and Silicon Valley as a whole. Local economies continue to thrive despite a general financial slowdown across the nation and throughout much of the world.
The Equinix purchase price was for $12 million. iStar Financial, the seller, confirmed that the company bought 11.5 acres of additional land in South San Jose. Records further state that the property will be used for data storage, as expected.
There is a total of 386,000-square feet of physical space in which Equinix can store electronic data for its clients. Available plans indicate that Equinix will use the existing two buildings rather than construct a new edifice.
Most of the Great Oaks area consists of residential spaces, shopping options and hi-tech entities. Plans are set for a total of 700 residential units on the more undeveloped east side of the campus. Also, Costco promises to build a 150,000-square foot store that will surely spur continued residential and commercial growth. HGST, a data storage solutions company, is another prominent hi-tech tenant, that will surely welcome the expansion of Equinix operations in the area.
San Jose Making Progress
Expansion seems to be the buzzword for San Jose. Progress continues all around the city. The land that Equinix bought was once owned by IBM. During its heyday, “Big Blue” had a disk drive factory here. Of course, that storage technology went the way of the dinosaur by 2000.
Unlike other areas, such as the unfortunate Rust Belt in the Midwest, which has witnessed whole cities turn into virtual ghost towns following the closure of manufacturing plants, San Jose has been able to remain relevant in its primary industry. The departure of “Big Blue” could have left a decaying plot of land; instead, iStar Financial has been able to close sale-after-sale in the area. Hopefully, this positive trend will continue.
The Future of San Jose in the Data Industry
Even if San Jose fails to surpass its friendly rival Santa Clara in terms of data center space, things look well for the future. The ability to fill vacant lots demonstrates a vibrant economy. Moreover, the tenants are some of the most important brands in their respective fields. Costco, for example, is a proven economic engine that will bring jobs, residents and other quality businesses to the community.
Equinix has made a wise choice to expand its operations in San Jose. Locals can expect even more prestigious companies to relocate to the area in the future. In general, expect more prosperity throughout the next few decades.
Post excerpt: South San Jose continues to witness economic growth with the recent expansion of Equinix in the area. The data center leader will make a positive impact in the community.
Katrina is a leader in the IT industry with innovative ideas and custom solution as a product specialist for Rack Solutions.