Startup Prime Data Centers Builds New Center In Silicon Valley

As demand for data center services continue to grow despite the COVID-19 pandemic, startup Prime Data Centers is breaking ground on a new facility in Santa Clara, California.


Shot of Corridor in Working Data Center Full of Rack Servers and Supercomputers with High Internet Visualization Projection.

Data center wholesale startup Prime Data Centers is breaking ground on a new hyperscale data center facility in Silicon Valley as the company continues to construct new data centers in California with national expansion expected ahead.

Construction on the new 121,000 square-foot, 9 megawatt data center in Santa Clara, Calif., will begin within the next 60 days and the company will start accepting tenants next year. Prime Data Centers focuses on providing data centers to large enterprises and hyperscalers, who are continuing to invest heavily in data centers despite the economic disruptions caused by the COVID-19 pandemic.

Earlier this year, the San Francisco-based startup built a new 8 megawatt, 70,000 square-foot data center within McClellan Business Park in Sacramento, which is a Federal Qualified Opportunity Zone, with plans to add more data centers on the 38-acre campus.

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Despite dismal data center infrastructure spending in 2020 due to the coronavirus pandemic, ensuing recession and subsequent restricted cash flows, IT research firm Gartner expects a huge rebound starting in 2021. Total end-user spending on global data center infrastructure is projected to climb to $200 billion in 2021, up 6 percent from 2020, according to the latest forecast from Gartner. This year, worldwide data center spending is projected to reach only $188 billion, down 10.3 percent year over year.

Hyperscale cloud providers like AWS, Microsoft, Oracle and Google are continuing to invest billions on building and equipping new data centers due to high demand for cloud and digital transformation services driven by trends such as the new remote workforce.

Prime Data Centers delivers colocation, build-to-suit, powered shell and edge solutions. Founded in 2017, the privately held startup offers wholesale data center development and is owned by entrepreneurs who control $6 billion in assets, according to the company. Prime Data Centers CEO Nicholas Laag said in a statement that the new data center is Silicon Valley was one of the most sought-after locations in the world.

“Prime Data Centers is breaking ground at this location so that we can continue to offer the most strategic and advantageous wholesale data center leasing in California,” said Laag, who has decades of experience in private investment firms and the data center industry.

The new Santa Clara data center has already secured access to new dark fiber routes to all major interconnect facilities in Silicon Valley.

Prime currently has data centers in Sacramento, Santa Clara and Hayward, Calif., with commitments to expand nationally.