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San Jose warehouse set for transformation into eight-story AI research and data facility

A vacant San Jose warehouse at 199 Bassett Street will be redeveloped into an eight-story AI research and development facility. Arena Investors plans a 281,800 sq ft center combining labs, offices, and data halls.

2 min read
IT and development

San Jose Warehouse to Transform into Eight-Story AI R&D Facility

A vacant warehouse site at 199 Bassett Street in San Jose, California, is set for redevelopment as an eight-story AI research and development center. Arena Investors has submitted plans to replace the existing industrial buildings with a new facility focused on AI innovation.

The less-than-one-acre property has a history of planned residential projects. Previously, KT Urban considered a 27-story multifamily tower named Aviato. Later, urban developer Starcity proposed an 18-story, 516,000 sq ft co-living tower with 803 affordable units — potentially the largest co-living building globally. However, these plans never materialized due to legal disputes, financial troubles, and the impact of Covid-19.

Shift from Residential to AI Infrastructure

After Starcity's foreclosure and legal challenges, lender Arena Investors acquired the site in 2022 for just $100,000. Now, the focus has shifted from housing to technology infrastructure.

The new development will demolish the current buildings and construct a 281,800 sq ft facility combining lab and office spaces with IT white space floors. The design includes:

  • A basement housing an on-site substation
  • Three floors dedicated to data halls
  • Two floors for generators
  • A rooftop cooling plant
  • Two lobbies and ground-level retail space

Details on capacity and project timelines have not been disclosed. Additionally, Arena plans to develop 400 housing units elsewhere in downtown San Jose, according to planning documents.

About Arena Investors

Arena Investors is an institutional asset manager affiliated with Arena Investor Group holdings and founded in partnership with The Westaim Corporation. The firm manages approximately $3.5 billion in invested and committed assets.

This development reflects a strategic pivot in San Jose's real estate landscape, aligning with the growing demand for AI research facilities in Silicon Valley. IT and development professionals interested in AI innovation might find this project indicative of the region's evolving infrastructure needs.

For those looking to enhance their AI skills, exploring AI-focused training and courses can be valuable. Resources such as Complete AI Training's latest AI courses offer practical learning paths for professionals in this field.

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