- Amazon Web Services purchased a $78M former EarthLink site in Pasadena as part of its growing US data centers strategy.
- The company is shifting from leasing to owning infrastructure in power-rich locations to better support cloud and AI growth.
- Pasadena’s access to municipal utilities and proximity to Caltech make it a strategic hub for Amazon’s tech investments.
- Amazon has spent $2.5B on 20+ properties nationwide in two years, reinforcing its long-term commitment to data center development.
A Strategic Shift Toward Ownership
Amazon’s $78M Pasadena purchase highlights its shift toward owning, not leasing, data center infrastructure for long-term growth, reports CoStar. Located at 2964 Bradley St., the 164K SF building once housed telecom firm EarthLink’s data center and spans roughly 8 acres.
AWS will likely use the site for cloud operations, though it may also convert portions to office space based on national plans.
Eyeing Power-Rich Locations
Amazon’s purchase reflects a broader trend in its real estate strategy. The company is shifting from leasing to acquiring land or existing facilities. In 2024, AWS leased several Inland Empire buildings but has slowed its leasing activity in Southern California overall.
The Pasadena property, situated in a city with its own municipal utility, offers attractive advantages: easier access to scalable power and water—two critical resources for data centers. These benefits echo recent moves like Amazon’s $700M land buy in Prince William County, Virginia, for future data center development.
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Pasadena’s Tech Ecosystem Draw
Pasadena’s strong research and tech footprint makes it a logical target for Amazon. Caltech’s focus on AI and quantum computing already attracted AWS, which opened its 21K SF AWS Center for Quantum Computing on campus in 2021.
The city is home to other high-tech clusters, with companies like GM and BYD establishing R&D centers nearby. Furthermore, utilities play a pivotal role in site selection. For example, Pasadena Water and Power currently supplies 1K GWh annually and has planned capacity increases to support the region’s growing tech demand.
The Bigger Picture
Amazon’s national data center strategy is scaling quickly. With North American data center vacancy at a record low of 2.3%, AWS’s land acquisitions offer flexibility and control over future capacity.
Owning property outright, particularly in utility-rich areas, gives AWS more control. It avoids permitting delays and speeds up deployment.
What’s Next
Amazon will keep targeting markets like Pasadena to expand infrastructure for AI, quantum computing, and high-demand cloud services.
AWS’s Pasadena deal signals a broader trend, serving as a blueprint for its evolving real estate strategy across Southern California.
