Tag Archives: data center

Data Center Development – City of Vernon & Los Angeles

A San Francisco developer has filed plans to build a 261,000-square-foot data center in the Los Angeles County industrial hub – the City of Vernon.

Prime Data Centers, a wholesale data center developer and operator, has proposed a three-story building on 4.5 acres at 4701 S. Santa Fe Ave., five miles south of Downtown Los Angeles, the Los Angeles Business Journal reported.

The first known data center in the industrial city will replace a 224,600-square-foot garment manufacturing facility built in 1946 and last renovated in 2001, according to Dgtl Infra Real Estate. The property was most recently listed for $30 million.

The new data center is expected to deliver up to 33 megawatts of power to its tenants. The company is also creating a 49.5 megavolt amp substation that will service the new site. Completion is expected in the fourth quarter of next year.

One of Los Angeles’ key strengths is its diverse long-haul fiber and subsea cable connectivity, according to Dgtl Infra. L.A. gives long-haul fiber routes linking Phoenix and Las Vegas access to the West Coast, while serving as a key access point for long-haul fiber routes between Mexico and Canada.

To this end, Prime Data Centers’ Vernon facility will be carrier-neutral and up to five miles away from major interconnection hubs at One Wilshire, 600 W. Seventh St., 530 W. Sixth St., 900 N. Alameda and 818 W. Seventh St. in Downtown Los Angeles, DTLA.

“Los Angeles is a thriving global connectivity market, and our new hyperscale Vernon data center will be right in the middle of it all,” Nicholas Laag, chief executive and founder of Prime Data Centers, said in a statement.

Map of Data Centers in Los Angeles and Southern California.
Map of Data Centers in Downtown Los Angeles.

About Data Centers

The growing reliance on cloud computing and data storage has led to an increased demand for data centers. The two fastest growing segments of the data center space are hyperscalers and edge data centers. Hyperscalers are typically defined as business-critical facilities that are significantly larger than typical data centers and are designed to support robust and scalable applications. These assets are typically owned by companies such as Google, Amazon, Microsoft or Meta. A growth forecast from Data Bridge Market Research indicated that the hyperscale data center market will grow at a CAGR of roughly 29.32% between 2023 and 2035.

Edge data centers are located closer to the users and their devices that collect and transmit data, or wherever data is being generated. Generally, these centers work as the go-between between the cloud or centralized regional data centers and IoT (Internet of Things) devices and their associated cellular tower sites. There is an expectation for IoT devices to grow 16% in 2023 to have an estimated 16.7 billion active end points. This would show a CAGR of 26.1% between 2023 and 2030.

These data center facilities are the hub of the new economy and play a fundamental role in our society and digital economy. Their reliability and growth are critical for the continued development of our economy into Web 3.0.

The rapid growth of emerging technologies like Artificial Intelligence (AI) is fueling demand for data center capacity, already driven higher by the cascade of digital innovations over the past decade such as content streaming, cloud computing, machine learning (ML), Internet of Things (IoT), ecommerce and more. While other commercial real estate sectors are experiencing a decline in construction pipelines, data center development has reached an all-time high and will continue to grow to meet demand. 

Contact us to locate potential sites for development.

Types Of Industrial Properties Explained

Industrial is 1 of 4 commercial property types (Industrial, Retail, Office and Multi-family) and is a broad category encompassing many different types of buildings with the most common being warehousing and distribution or manufacturing. Below are brief descriptions of 9 industrial property types.

Warehouse / Distribution

Industrial warehouse and distribution building for Amazon.

Warehousing & Distribution buildings are very large, single-story structures used primarily for warehousing and the distribution of business inventory. These buildings range from 5,000 to hundreds of thousands of square feet under roof and have up to 60-foot ceiling heights to accommodate extensive racking and storage systems. These buildings may have a small amount of office space as numerous loading docks, truck doors and large surface parking lots to semi-trailers. Some buildings may be served by rail cars.

Manufacturing

Industrial food manufacturing building producing meals for delivery in Downtown Los Angeles

Manufacturing facilities (also called heavy industrial buildings) are designed to house specialized equipment used to produce goods or materials. In addition to providing three-phase high capacity, electric power, these industrial properties may include heavy ductwork, pressurized air or water lines, buss ducts, high capacity ventilation and exhaust systems, floor drains, storage tanks and cranes. A subset of this is food manufacturing which often includes refrigeration, clarifiers, boilers, sloped floors for drainage, and other specialized food facility equipment.

Refrigeration/Cold Storage

Lineage Cold Storage, Vernon, CA

Refrigeration/Cold Storage are specialized industrial buildings that offer large capacity cold storage such as cooler (34 deg F) and freezer (-10 to 0 deg F) rooms. They are often used as a distribution center for food products such as meat, produce, prepared meals, dairy, etc…

Flex or Showroom

Media Centre Dr
Media Centre Drive

This versatile building type (short for “Flexible”) covers a broad range of uses and often is used to combine one or more uses in a single facility, including office space, research and development, showroom retail sales, light manufacturing research and development (R&D) and even small warehouse and distribution uses. Because of this versatility, flex buildings are sometimes listed as separate category. Flex buildings typically have ceiling heights under 18 feet and have a higher percentage of office space than larger industrial buildings.

Telecom / Data Hosting Centers

CoreSite Data Center in DTLA

These are highly specialized industrial buildings located in close proximity to major communications trunk lines with access to an extremely large and redundant power supply capable of powering extensive computer servers and telecom switching equipment. These buildings have reinforced floor slabs capable of supporting the weight of the electrical and computer equipment as well as backup generators, and specialized HVAC. They may also include raised flooring to handle cooling and extensive cabling. These buildings may also be called Switching Centers, Cyber Centers, Web Hosting Facilities and Telecom Centers.

R&D (Research and Development)

Google Westside Pavilion in Los Angeles, common open campus that internet tech companies like

Flex buildings are popular in high technology industries such as computers, electronics and biotechnology because they effective support a hybrid of office, manufacturing and warehouse space housed in a single location. Often these types of space users prefer locating in campus-like business parks featuring extensive landscaping, shared architecture design, and lots of surface parking and open space.

Biotech (Wet Lab)

Biotech buildings are highly specialized flex buildings that support a range of laboratory space where chemicals, drugs or other material or biological matter are tested and analyzed. This type of building requires extensive plumbing and water distribution, direct ventilation and specialized piped utilities. In addition, some may offer accurate temperature and humidity controls, dust control, and heavy power. Often these types of buildings are located together in campus-like fashion with extensive landscaping, extensive surface parking and open space.

Soundstages – Film & TV Production Studios

Very high clearance Audio Video Soundstage – film and streaming television production

Soundstages are newly constructed and other times developers retrofit existing industrial buildings. These facilities typically have ceiling heights over 30 feet with concrete tilt up walls along with ancillary offices and a commissary for film crews to eat. They are used for film and television production along with commercials, social media, and product videos.

Los Angeles has 50% of the total square footage of production studios and soundstages in North America. Large clusters are in Hollywood, Burbank, and Downtown L.A. In 2023, demand for studio space to create content outpaces supply and availability.

IOS – Industrial Outdoor Storage

Industrial Outdoor Storage example: truck trailer land site

Industrial Outdoor Storage (IOS) is a land site zoned for an industrial use where the tenant can store items outside, most commonly vehicles, construction equipment, building materials, or containers. Most IOS sites have a small building that is generally used as an office and to store tools / parts required for the tenants’ operations. Typical IOS sites range from 3-10 acres of land with a small warehouse building.

IOS also includes truck terminals, which are specialized, low-coverage industrial facilities designed for the maximum throughput of goods. Truck terminals are cross docked facilities where a long-skinny building resides near the center of the site. Goods are not stored in truck terminals but rather moved from one truck to another in the most efficient manner possible. Less-than-truckload (LTL) third-party logistics operators, which combine multiple customers’ freight on a single truck for at least the long-haul portion of the journey, are large users of truck terminals.

Another common IOS use is truck trailer parking, sales, and leasing. And also equipment rentals.