Lone Star PACE Facilitates $40M in C-PACE Financing for Data Center Development in Houston
HOUSTON, Texas, Sept. 18, 2024 — Lone Star PACE, a leader of Texas’ Commercial Property Assessed Clean Energy (C-PACE) program, administered $40 million in C-PACE financing for the revitalization of ViVa Center, a 2.3-million-square-foot technology hub in Houston.
The 774,000-square-foot facility at 11445 Compaq Center West Drive is part of the recently rebranded ViVa Center, which was originally the headquarters for Compaq Computer and later acquired by Hewlett-Packard Enterprise. This turnkey data center will cater to hyperscale users in the cloud computing and artificial intelligence sectors.
C-PACE financing proceeds will be used to install sustainable building components to Phase 1 of the data center development. Improvements include energy-efficient windows, LED lighting, advanced HVAC systems, and high-efficiency plumbing upgrades.
Lee McCormick, president of Lone Star PACE, said: “We are thrilled to have partnered with VivaVerse Solutions on this much-needed project. Demand for data center infrastructure has exploded amid a rise in consumption and technological innovation, and it’s exciting to see C-PACE play a role in meeting that need.”
C-PACE allows property owners to access low-cost, long-term financing for energy and water conservation systems at commercial buildings. Property owners can use C-PACE to finance new construction, building retrofits or recapitalizations.
Nuveen Green Capital served as the capital provider for the project, which involves retrofitting an existing building. Phase 1 is scheduled for completion this fall.
Sean Ribble, senior director of originations at Nuveen Green Capital, said: “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. In a capital-constrained market, more owners and developers are recognizing the value of C-PACE as a flexible, cost-efficient financing solution for commercial real estate projects of all asset classes. We look forward to supporting many more C-PACE deals across Texas as the platform continues its expansion as a more mainstream financing option.”
At full build-out, the Viva Center development will offer 250 megawatts of power, a dedicated chilled water plant and a natural gas pipeline for energy generation.
Freddy Vaca, president of VivaVerse Solutions, said: “At ViVa Center, our commitment to technological innovation and forward-thinking design drives the integration of state-of-the-art building systems. Partnering with Nuveen Green Capital and Lone Star PACE has been instrumental in aligning our advanced sustainability objectives with our investment returns, setting a new benchmark for efficiency and performance in data center development.”