One of New Jersey's larger data center facilities has changed hands this week. QTS has purchased the NJ-1 campus and customer base of DuPont Fabros Technology in Piscataway, adding some 38 acres and 360,000 square feet of raw space to its portfolio.
DuPont Fabros had announced its intention to find a buyer for the facility back in January. They had found it difficult to fill the facility as compared to their other markets, and believed that the location simply wasn't conducive to their wholesale approach. QTS has more of a direct approach to the enterprise market, and it seems like a better fit in their hands.
The deal brings QTS's footprint in the state up to three locations, the other two being in Princeton and Jersey City -- both of which are at or near full capacity. The Piscataway facility currently has some 88,000 square feet of raised floor data center space built out. QTS says it plans to double that to 176,000 square feet and to upgrade the available power from 18 Mw up to 26 Mw over the next four years.
QTS paid $125M for the facility, which is expected to contribute $7.5M in annualized recurring revenue and $3.0M in adjusted EBITDA.