Lyon County public records show that Microsoft paid $70.5 million for the real estate, which currently is raw land.
Courtesy Rick Nelson/Mark IV Capital
Microsoft’s Americas operations center in Reno is the backbone of the company’s global business operations, handling millions of transactions and processing billions in revenue each year.
The Redmond, Washington tech giant recently doubled down on its investment in Northern Nevada by purchasing 300.7 acres of land at Victory Logistics District in Fernley. Lyon County public records show that Microsoft paid $70.5 million for the real estate, which currently is raw land.
A Microsoft spokesperson declined to comment on the land purchase, instead pointing NNBW to the company’s website for information on its global network of hyperscale data centers.
“Microsoft has nearly 50 years of supporting local business growth, community development, and innovation. We don’t have anything to share at this time about the land deal in Fernley, but we are committed to working with the community as we move forward,” the spokesperson said in a statement.
Microsoft isn’t the first technology company to plant its flag at the sprawling 4,300-acre industrial park. Battery recycler Redwood Materials leased 815,215 square-feet at Victory Logistics District, but it has since subleased that space as it brought its own buildings online at its recycling campus at nearby Tahoe Reno Industrial Center.
However, Microsoft would be the first major technology company to construct a data center at Victory Logistics District if that’s the direction the company takes once its development plans are announced. Microsoft has had a presence in Northern Nevada since 1997.
Evan Slavik, president and chief executive officer of VLD owner Mark IV Capital of Newport Beach, Calif., said in a statement that the land purchase solidifies Victory Logistics District as a premier destination for data center and digital infrastructure development.
“We are thrilled to welcome this world-class technology company to Victory Logistics District,” Slavik said. “This transaction is a testament to Victory’s unique combination of scalability, infrastructure, and strategic location. We see this as a major step toward many data center developments at Victory, and we look forward to continuing to attract industry-leading enterprises that will drive economic growth to the region.”
With vast swaths of land still available for development at Victory Logistics District, other hyperscalers (cloud computing service providers) could take a closer look at Fernley. Microsoft’s presence at Victory Logistics District may spark a land rush similar to the “Tesla effect” back in 2015 when the electric car manufacturer announced it would construct a massive Gigafactory at Tahoe Reno Industrial Center. That announcement spurred a host of additional tech businesses to invest billions constructing facilities in Northern Nevada, including Switch, Apple and Google, which now operate sprawling data center campuses in Storey County.
Mark IV Capital has already constructed nearly 2 million square feet of new Class A industrial buildings at VLD, and in late February the company announced plans to spend $120 million for mass grading on 600 additional acres to get as much as 1,600 acres of land development-ready for potential clients interested in locating at VLD. Mark IV will move more than 3 million cubic yards of dirt and also plans to locate all critical horizontal infrastructure, including four miles of new roads, power, water, sewer, storm drainage and connectivity to fiber network lines running along Interstate 80 and U.S. Highway 50.
Rick Nelson, Mark IV’s senior vice president of Northern Nevada operations, told NNBW that Mark IV will continue with its mass grading plan but won’t conduct any work on the Microsoft parcel.
“We are very excited to have Microsoft in our park,” Nelson said. “They are going to allow us to establish a road network around them and put in the infrastructure, which not only benefits them but the rest of the park as well. It enables everything around them to be utilized and be attractive to other businesses, and we do have a lot of movement with other businesses looking at those properties.
“All the land will have utilities hooked up, so as different companies come for those properties they have the ability to go vertical (quickly),” Nelson added. “It also advances our effort with the public utility and other companies to bring power to Victory.”
Nelson told NNBW that Mark IV is working closely with NV Energy to establish the Eagle substation north of I-80 as well as transmission lines that will greatly increase available power at VLD. The company is also working with a private entity for on-site power generation and distribution throughout the park, Nelson said.
“All the land will have the level of power desired to operate large businesses,” he added. “Victory is extremely friendly for the land to be developed, and that makes it attractive due to the (lower) cost of developing.”
Additional plans for Mark IV Capital include extending Nevada Pacific Parkway from I-80 to U.S. 50, creating a master planned residential community, and formation of a business development and workforce training center.
