Lone Star PACE, a prominent figure in Texas’ Commercial Property Assessed Clean Energy (C-PACE) program, has played a crucial role in securing $40 million in financing for the revitalization of ViVa Center, a sprawling 2.3-million-square-foot technology hub in Houston. This funding will power the transformation of the former Compaq Computer headquarters into a cutting-edge data center, specifically catering to the demands of hyperscale users in the cloud computing and artificial intelligence sectors.
The 774,000-square-foot facility at 11445 Compaq Center West Drive is undergoing a major transformation as part of the rebranded ViVa Center. This turnkey data center, set to be operational this fall, will serve as a critical infrastructure component for the burgeoning AI industry. The financing will be utilized to install sustainable building elements in the first phase of the data center development, encompassing energy-efficient windows, advanced HVAC systems, and high-efficiency plumbing upgrades.
Lee McCormick, president of Lone Star PACE, expressed his excitement about the project, stating, “We are thrilled to have partnered with VivaVerse Solutions on this much-needed project. The demand for data center infrastructure has skyrocketed amidst the surge in data consumption and technological innovation, and it’s truly exciting to see C-PACE contributing to meeting this growing need.”
C-PACE, a financing program designed to promote energy and water conservation in commercial buildings, offers property owners access to long-term, low-cost funding for sustainable improvements. This can be used for new construction, building retrofits, or recapitalizations. Nuveen Green Capital, a leading sustainable real estate financing provider, acted as the capital provider for the project, which involves retrofitting an existing building.
Sean Ribble, senior director of originations at Nuveen Green Capital, highlighted the importance of C-PACE in a capital-constrained market, stating, “We are proud to expand our partnership with Lone Star PACE by providing $40 million in C-PACE capital to VivaVerse Solutions for the deep retrofit of their data center. More owners and developers are recognizing the value of C-PACE as a flexible and cost-efficient financing solution for commercial real estate projects across various asset classes. We look forward to supporting numerous C-PACE deals across Texas as the platform continues its expansion as a mainstream financing option.”
At full build-out, the ViVa Center development will boast an impressive 250 megawatts of power, a dedicated chilled water plant, and a natural gas pipeline for energy generation. Freddy Vaca, president of VivaVerse Solutions, emphasized the company’s commitment to sustainability and innovation, stating, “At ViVa Center, our dedication to technological advancement and forward-thinking design drives the integration of cutting-edge building systems. Partnering with Nuveen Green Capital and Lone Star PACE has been instrumental in aligning our advanced sustainability goals with our investment returns, setting a new standard for efficiency and performance in data center development.”
VivaVerse Solutions is reimagining the former HPE/Compaq Computer campus as a hub for next-generation applications, with a focus on AI, blockchain, and high-performance computing solutions. Their ambitious plans include state-of-the-art facilities, designed to transform the Texas data center landscape, setting new benchmarks for energy efficiency and operational reliability. With the data center market projected to reach $340.2 billion by 2024, VivaVerse Solutions is strategically positioned to provide top-tier facilities for AI hyperscalers.
This project highlights the growing importance of sustainable development and the role of innovative financing solutions like C-PACE in driving progress within the data center industry. As the demand for data center infrastructure continues to escalate, initiatives like this are crucial in meeting the needs of the rapidly evolving technological landscape while prioritizing environmental sustainability.
