DRT's data center at 1201 Comstock St. in Santa Clara (above) is located near the new property

Provider of wholesale colocation space Digital Realty Trust has bought a 40,300 square foot building in Silicon Valley and announced an ambitions timeline for converting it into a three-pod data center, planning to build out all three 1.1 MW pods by the end of the year.

The Santa Clara, Calif., facility at 1725 Comstock St. is adjacent to DRT's several existing data centers in the city.

Its total raised-floor yield will be 25,500 square feet, according to a company news release.

\"This acquisition is consistent with our strategy of adding additional redevelopment inventory to markets where we see strong demand for our Turn-Key Datacenter product,\" DRT's SVP of Acquisitions Scott Peterson said in a statement.

\"The building is located contiguous to several of our facilities in Santa Clara, giving us and our customers the benefit of significant operating economies of scale, including the ability to deliver our Turn-Key product quickly and cost effectively.\"

Acquisition of space for redevelopment has been part of the trust's expansion strategy, in addition to acquisition of completed and often fully leased out data centers.

The company has been expanding its worldwide footprint rapidly, announcing five new data center construction projects and five projects to expand existing facilities in the US and UK last month alone.

According to many market analysts, there is an extreme shortage of data center space in the US today, with demand rapidly outgrowing supply.

The supply of space is having a hard time catching up with demand because of the tough conditions of capital markets.