Sabey Expands in New York, Boosting Data Capacity at Intergate.Manhattan

June 18, 2020
In a promising sign for demand in the New York market, Sabey Data Centers will add 3.6 megawatts of capacity at its Intergate.Manhattan project, substantially increasing the data center space in the building.

Sabey Data Centers is undertaking a major expansion of its New York City property, substantially boosting the data center space in the building. Sabey said this week that it will add 3.6 megawatts of capacity at its Intergate.Manhattan and has leased a portion of the new space to a financial services tenant.

Sabey will increase the building’s IT equipment total capacity to of 5.7 megawatts. The company will install two new emergency generators, new electrical switchgear and UPS modules,and new chillers and heat exchangers. It cxpects to complete the new space by the end of 2020.

The expansion project is part of a modest rebound in new data center development in New York City, which is a major market for the financial sector, but a challenging place for new construction. Last year DataGryd added 1 megawatt of new space at 60 Hudson Street.

The Transformation Continues

“In terms of capacity, Intergate.Manhattan will now be one of the largest data centers in Manhattan,” said Robert Rockwood, President of Sabey Data Centers. “This significant upgrade takes advantage of the property’s unique structural, clearance and utility chase advantages.”

Intergate.Manhattan is a 1.1 million square foot building located in Lower Manhattan. It is a mixed used building with data center infrastructure from the basement to the 13th floor and office space from the 14th to 31st floors.

The project at 375 Pearl Street, near the Brooklyn Bridge, was developed in 1975 as a Verizon telecom switching hub and later served as a back-office facility. Sabey bought the building in 2011 and renovated it to support modern data centers. The first phase was commissioned in 2013 with the build-out of a data hall on Floor 6. The 12th floor will be finished as data hall space as part of this project, with the 7th floor reserved for future build-out.

In 2014 Sabey said it would lease half the tower as office space, and transformed the cement facade of the Verizon days by adding large windows to offer tenants dramatic views from the upper floors. The expansion announcement reflects renewed demand for large footprint data center space in Manhattan, as demonstrated by Sabey’s pre-leasing success.

“As those data halls approach full capacity, Sabey has already signed a major lease with a new financial services tenant who will take advantage of the increased capacity,” said Dan Meltzer, Sabey Vice President for Sales and Leasing at Intergate.Manhattan.

Sabey in Expansion Mode

Sabey is in expansion mode, adding capacity across its footprint. The company recently lined up $800 million in funding, using securitized notes to arrange low-cost capital for continued expansion of the company’s U.S. data center campuses.

Sabey operates more than 3 million square feet of mission-critical space, making it one of the largest privately-held multi-tenant data center operators in the United States. In addition to its Manhattan project, the Seattle-based builder has campuses in Northern Virginia (Ashburn), and three sites across the Pacific Northwest.

Sabey Data Centers is a joint venture between Sabey Corporation and National Real Estate Advisors. The company’s real estate portfolio is anchored by data center campuses in Washington State, including the Intergate.East and Intergate.West developments in the Seattle suburb of Tukwila, the Intergate.Columbia project in Wenatchee, and the Intergate.Quincy project.

About the Author

Rich Miller

I write about the places where the Internet lives, telling the story of data centers and the people who build them. I founded Data Center Knowledge, the data center industry's leading news site. Now I'm exploring the future of cloud computing at Data Center Frontier.

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