DataBank Holdings and Goodman Group have partnered to market the LAX2 data center in Vernon, Los Angeles, which is currently under construction and set to open in December. This 140,000-square-foot facility represents DataBank's second site in Southern California, enhancing its presence in a key mar
DataBank Holdings and Goodman Group have partnered to market the LAX2 data center in Vernon, Los Angeles. This 140,000-square-foot facility will deliver 32 megawatts of capacity, starting with 6MW at launch.
The partnership signals significant expansion in a supply-constrained market, potentially impacting data center cap rates and investment flows in Southern California.
Potential delays in construction or opening of the data center.
MediumImplement robust project management and contingency planning.
Increased competition in the data center market.
HighDifferentiate offerings through strategic partnerships and advanced technology.
Rising borrowing costs impacting financing conditions.
MediumSecure long-term fixed-rate financing to hedge against rate increases.
The Real Deal reports on the partnership between DataBank Holdings and Goodman Group to market the LAX2 data center in Vernon, Los Angeles. The facility, set to open in December 2026, will be 140,000 square feet and deliver 32 megawatts of capacity. Goodman acquired the site in 2023 and has developed the project, while DataBank will operate and market it. The joint venture aims to expand beyond this project, targeting additional sites in capacity-constrained markets across the U.S. Goodman manages $12.4 billion of work in progress globally, including industrial and low-latency data centers. DataBank's expansion follows a $250 million equity infusion and builds on a $2 billion equity raise in 2024.
This source provides comprehensive details on the strategic partnership, the facility's specifications, and the broader market implications, making it essential for understanding the investment landscape in data centers.
Data center yields will compress below 4% within 18 months as institutional capital floods the sector.
therealdeal.com
Goodman acquired the Vernon site in 2023. Construction of the LAX2 data center is ongoing, with an expected opening in December 2026. The facility will initially deliver 6MW of capacity, scaling up to 32MW by September 2027 [therealdeal.com].
End of Intelligence Report · 1 Sources Verified