O
verton Moore Properties, a Torrance-based investor, has acquired a 130,800-square-foot data center building in North San Jose for $9.5 million. The property at 2334 Lundy Place was purchased from Digital Realty, a real estate investment trust based in Austin, Texas. At $73 per square foot, the price is considered a bargain for commercial properties in Silicon Valley.

    The buyer's plans for the 39-year-old building are unclear, but data centers have become increasingly attractive to investors due to growing demand for cloud, network, and artificial intelligence services. In Downtown San Jose, Westbank, PG&E, and city officials are teaming up to build thousands of eco-friendly homes powered by surplus heat from nearby data centers.

    Overton Moore Properties manages over 9.8 million square feet of office and industrial properties, founded in 1972. The company's acquisition comes as the demand for data center space continues to rise, driven by the growth of cloud computing and artificial intelligence services.