Conversion to Datacenter: A Collaborative Effort Between Developer, CoreWeave, and PSE&G
In a significant development for New Jersey’s tech landscape, CoreWeave, a Roseland-based cloud computing company, has announced a long-term lease agreement with a partnership between Onyx Equities and Machine Investment Group. This collaboration aims to transform the 280,000-square-foot building 11 NEST at the Northeast Science & Technology (NEST) Center in Kenilworth into a cutting-edge data center. This ambitious project marks CoreWeave’s inaugural data center in New Jersey and is set to make a substantial impact on the region’s technological infrastructure.
Investment and Development Plans
CoreWeave is poised to invest a staggering $1.2 billion into this project, while the Onyx Equities-led venture anticipates spending over $50 million on the conversion. This investment underscores the growing importance of data centers in the modern economy, particularly as businesses increasingly rely on cloud computing and artificial intelligence (AI) technologies. The NEST Center, with its rich history as a former lab and manufacturing facility, is being repurposed to meet the demands of today’s digital landscape.
PSE&G’s Role in Infrastructure Enhancement
Public Service Electric and Gas Company (PSE&G), New Jersey’s oldest and largest utility provider, is playing a crucial role in this initiative. The utility is preparing the local electrical infrastructure to accommodate the energy requirements of the new data center. Currently, PSE&G serves over 30 large data centers, showcasing its experience and capability in supporting such facilities. Ralph LaRossa, Chair, President, and CEO of PSEG, emphasized the importance of this project as a model for economic development in New Jersey, highlighting the collaborative efforts of various stakeholders.
Government Support and Economic Impact
New Jersey Governor Phil Murphy has expressed strong support for the project, noting that CoreWeave’s investment reflects the state’s leadership in AI and innovation. He stated, "Through collaboration with utilities, government, investors, and real estate developers, we’re committed to attracting businesses that will build an innovation economy for the future." This sentiment is echoed by local officials, including Mayor Linda Karlovitch, who recognize the potential for job creation and economic growth stemming from the data center’s establishment.
CoreWeave’s Vision for AI and Cloud Infrastructure
CoreWeave’s CEO and Co-founder, Michael Intrator, articulated the company’s excitement about launching a next-generation data center in New Jersey. He credited Governor Murphy’s initiatives for fostering an AI ecosystem in the state, positioning New Jersey as a hub for AI business. In 2023, CoreWeave significantly expanded its global footprint, quadrupling its data center capacity and aiming to conclude the year with a total of 28 data centers worldwide.
NEST Campus: A Hub for Innovation
The NEST campus, which spans over 100 acres and encompasses 2 million square feet, is strategically designed for life science innovation and data centers. This purpose-built environment addresses the growing need for customizable office, laboratory, and bio-manufacturing spaces in the tri-state area. The campus was previously the global headquarters of Merck, and since its acquisition by Onyx Equities, Machine Investment Group, and Pivot Real Estate Partners in February 2023, efforts have been underway to transform it into a vibrant hub for research and innovation.
Synergy Between Data Centers and Life Sciences
John Saraceno, Co-Founder and Managing Principal for Onyx Equities, highlighted the synergy between CoreWeave’s data center and the life science and biotechnology tenants at the NEST campus. He noted that the advanced cloud infrastructure provided by CoreWeave will enhance the capabilities of these tenants, particularly in supporting AI-driven projects and boosting research and development efforts. This collaboration is expected to foster innovation across multiple sectors, reinforcing New Jersey’s reputation as a leader in technology and science.
Future Prospects for New Jersey’s Tech Ecosystem
As the conversion of building 11 NEST into a state-of-the-art data center progresses, the implications for New Jersey’s tech ecosystem are profound. The partnership between CoreWeave, Onyx Equities, Machine Investment Group, and PSE&G exemplifies a model of collaboration that can drive economic growth and technological advancement. With the state’s commitment to fostering an innovation economy, New Jersey is well-positioned to attract further investments in technology and infrastructure, paving the way for a robust future in AI and data processing.
For more information about the NEST Center and its ongoing developments, interested parties can visit www.NestCenter.com. Additionally, details regarding PSE&G’s electric service can be found at pseg.com/service.