Cyxtera refuses leases at two data centers in Silicon Valley owned by Prime

Cyxtera plans to decline leases for two data centers held by Prime DC in Santa Clara, California. In June, Cyxtera filed for Chapter 11 bankruptcy due to continuing losses and upcoming debt maturities. The organization is seeking a buyer or new investor. According to DgtlInfra, Cyxtera intends to revoke two leases at Prime DC-owned properties along Comstock Street, leaving one site before the property's construction is finished.

According to reports, the colo company intends to reject two unexpired licenses at its SFO4-C and SFO4-D facilities, located at 1111 and 1231 Comstock, respectively. Cyxtera affirmed the lease rejection and linked it to the corresponding record. In June of 2021, Cyxtera leased the 1111 Comstock building, which was announced in October 2020 and completed in 2021. The facility's four stories and 121,000 square feet total 9MW. The property's lease with Cyxtera was set to end in November 2037.

In January 2022, Prime announced plans for a 9MW facility a few doors down at 1231 Comstock. The building's three-story, 80,000-square-foot construction began in late 2022 and is ongoing. The lease of the property by Cyxtera was not previously publicized. DgtlInfra reported that Cyxtera's lease for the property would begin in April 2024 and end in March 2039. The two properties are adjacent to the SFO4-A facility at 1500 Space Park Drive. This facility provides 9MW across 52,000 square feet; it was constructed by CenturyLink in 2008 and acquired by Cyxtera in 2017. On its website, Cyxtera presently only lists the SFO-A facility.