Overland Park-based QTS Realty Trust has bought a New Jersey data center for $125 million.
The 360,000-square-foot center has a capacity of 18 megawatts, and QTS Realty said it plans to expand that by an additional 8 megawatts. It is the company’s third center in the state.
“This represents an upfront cost per megawatt of below $7 million, which is materially below average cost to build in the New York/New Jersey market,” the company said in an announcement.
QTS Realty owns data centers and provides clients with a mixture of services, from providing custom data centers for clients to co-location space and cloud data services.
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The company had $311 million in revenue last year and 750 employees at the end of 2015. It was one of four area companies that became publicly traded a few years ago.
The Piscataway, N.J., center it acquired from DuPont Fabros Technology has served wholesale customers. QTS said it plans to incorporate all of its services at the site.
QTS said it expects to generate about $7.5 million in recurring revenue annually from the center, reflecting a recent notice from one client with $1.8 million in revenue that is allowing its contract to expire.