COPT Defense Acquires Land for Data Center Shell Development near Des Moines, IA and an 80,000 Square Foot Building in San Antonio, TX.
COPT Defense Properties (NYSE: CDP) (“COPT Defense” or the “Company”) acquired a 365-acre land parcel near Des Moines, Iowa in late September for $32 million to expand its data center shell program. The existing zoning on the land allows for data center development and initial plans indicate that the site can accommodate approximately 3.3 million square feet of development, supported by an estimated 1 gigawatt of power capacity.
Also, late in the third quarter, the Company acquired an 80,000 square foot building at 3900 Rogers Road in San Antonio, Texas for $17 million. The building was vacant upon acquisition, and the Company subsequently executed two leases with the U.S. Government to occupy the entire building, which it expects to commence in the second quarter of 2025. The Class A office building was constructed in 2005, and is located 5 miles northwest of the Company’s approximately 1.0 million square foot campus, which is 100% leased and occupied.
Stephen E. Budorick, COPT Defense’s President & Chief Executive Officer, commented:
Our land acquisition outside of Des Moines, Iowa provides a significant opportunity for us to expand our highly successful data center shell program to a new market.
“Des Moines, the 5th largest hyperscale market in the country is already home to several of the largest hyperscalers in the world, which are drawn to the market given attractive land values, power availability, with abundant access to renewable energy, access to long-haul fiber lines, and tax incentives enacted by supportive state and local governments. We expect this opportunity will fuel our development pipeline in the medium to long-term, and result in long-term accretion to FFO, AFFO, and NAV per share. Importantly, as we build out the parcel in phases, we plan to self-fund development of the site on a leverage-neutral basis.
“The acquisition of the Rogers Road building expands our relationship with the U.S. Government, provides additional operational scale given our nearby campus in San Antonio, will be accretive when rent commences in 2Q25, and reinforces our reputation as a trusted partner in supporting mission critical U.S. Government and defense contractor tenant requirements.”
READ the latest news shaping the data centre market at Data Centre Central
COPT Defense Acquires Land for Data Center Shell Development near Des Moines, IA and an 80,000 Square Foot Building in San Antonio, TX. source