Data center provider Equinix acquires six San Jose office buildings for fifty one million dollars from Kennedy Wilson

Data center giant Equinix acquires six San Jose properties from Kennedy Wilson for $51 million to expand Silicon Valley’s AI-driven computing infrastructure.

By: AXL Media

Published: Mar 5, 2026, 6:27 AM EST

Source: The information in this article was sourced from TRD Staff

Strategic portfolio acquisition in South San Jose

Equinix, a leading national provider of data center services, has acquired a cluster of six office buildings in south San Jose for 51 million dollars. The properties, located at 6800 Santa Teresa Boulevard, 140 Great Oaks Boulevard, and 6541 Via Del Oro, were sold by the real estate investment firm Kennedy Wilson. This sale price reflects a slight decrease from the 53.5 million dollars Kennedy Wilson paid for the buildings in 2020, suggesting a shift in valuation as the market pivots from traditional office space toward specialized technological infrastructure.

Leveraging local energy agreements for expansion

The acquisition follows recent efforts by Equinix to enhance the power capacity of its existing facilities in the immediate area. In January 2026, an Equinix facility located at 123 Great Oaks Boulevard doubled its electrical capacity to 40 megawatts. This project was the first to benefit from a specialized agreement between the City of San Jose and Pacific Gas & Electric, designed to ensure reliable power delivery for large scale industrial energy users. By securing adjacent properties, Equinix is positioned to further capitalize on this guaranteed energy infrastructure to support growing AI workloads.

San Jose as an emerging hub for AI infrastructure

San Jose is increasingly becoming a focal point for the AI driven asset class within Silicon Valley. Several real estate firms are currently seeking to pivot away from research and office use in favor of high density data centers. For example, Menlo Equities recently proposed converting a nearly 100,000 square foot building currently leased to Nvidia into a data center. This trend is driven by the unprecedented need for local computing power to support the semiconductor chips and large language models that define the current era of technological development.