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March 26.2025
2 Minutes Read

NorthPoint's Data Center Campus: A $1.5B Shift in Bucks County

Aerial view of NorthPoint data center campus surrounded by nature.

NorthPoint's Major Shift Towards Digital Infrastructure

In a bold move geared towards adapting to the evolving market dynamics, NorthPoint Development is set to transform a substantial former U.S. Steel site in Bucks County into a sprawling 247-acre data center campus. This ambitious project, which boasts a budget of $1.5 billion, underscores the growing demand for digital infrastructure in a world increasingly reliant on technology.

The Scope of the Keystone Trade Center

The Keystone Trade Center is now poised to contain a 2 million-square-foot data center spread across ten buildings, each varying in size from 112,000 to 217,000 square feet. NorthPoint's attorney, Mike Meginniss, stated that this strategy reflects a diversification of the project, following previous plans for warehouse spaces that have become less appealing amid a cooling industrial real estate market. The site has already seen significant progress, with the first two phases of development yielding 5.5 million square feet of industrial space.

The Changing Dynamics of the Industrial Market

Once facing a record low vacancy of less than 3% in late 2022, the regional industrial market has shifted by the end of 2024, resulting in a vacancy rate soaring to 7%. This shift highlights the waning demand for larger distribution warehouses while smaller footprints continue to attract interest. As NorthPoint pivots towards data centers, they are tapping into a booming sector driven by the surge in artificial intelligence and the necessity for vast computational resources, thereby redefining the future of logistics and industrial development in the region.

Future Outlook and Implications

The strategic repositioning by NorthPoint might signify a trend towards increased investment in data centers nationwide, reflecting not just the preferences of tenants but also illustrating a broader economic resilience. As industrial vacancies rise, the shift towards technology-focused developments, such as data centers, may offer valuable insights for other developers navigating this transition. As AI and digital demands grow, the construction of purpose-built facilities may become crucial for economic growth in the Philadelphia region.

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