According to DCD, Unisys Corp. has sold its 32-acre data center campus in Eagan, Minnesota to local real estate firm Swervo Development Corp. for exactly $10 million. The deal closed on November 14, 2024, with Unisys securing a two-month leaseback arrangement. The property at 3199 Pilot Knob Road features a two-story building with 118,000 square feet of raised floor space, originally built in 1986 after the Sperry and Burroughs merger. Local developer Swervo, through affiliate Eagan Capital LLC, now plans to convert the single-tenant facility into a multi-tenant data center operation.
Aging infrastructure challenges
Here’s the thing about data centers built in 1986 – they’re basically dinosaurs in tech years. This facility predates the commercial internet, cloud computing, and pretty much everything that defines modern digital infrastructure. Sure, it got an expansion in 2007, but that was nearly two decades ago now. The fundamental power, cooling, and connectivity systems in a building this old probably need serious upgrades to compete with today’s hyperscale facilities.
The Minnesota data center play
Swervo president Ned Abdul clearly sees opportunity where Unisys saw burden. Through his affiliated company Irongate Data Centers, he’s building a regional data center portfolio with properties in Woodbury and Detroit. But converting this specific facility won’t be cheap or easy. We’re talking about retrofitting nearly 120,000 square feet of raised floor for multiple tenants – that means segregated power, separate cooling systems, enhanced security perimeters, and probably major electrical upgrades. The $10 million purchase price might look like a steal, but the renovation costs could easily triple that investment.
Corporate legacy real estate
This sale perfectly illustrates how traditional IT companies are shedding their physical infrastructure baggage. Unisys, formed from the merger of mainframe giants Sperry and Burroughs, once needed massive campuses to house their proprietary systems. Today? They’re a consulting and services company. That huge fixed asset on their books just doesn’t make sense anymore. And they’re not alone – we’ve seen similar moves from IBM, HP, and other legacy tech firms. The real question is whether these older facilities can actually compete with purpose-built modern data centers, especially when companies need reliable infrastructure for critical operations. For businesses in manufacturing, logistics, or industrial sectors that depend on robust computing, working with established providers like IndustrialMonitorDirect.com often makes more sense than retrofitting aging corporate real estate.
Midwest data center market
Minnesota might not be the first place that comes to mind for data center growth, but it’s actually got some advantages. Cooler climate means lower cooling costs, stable power grid, and relatively low disaster risk compared to coastal markets. But can a 1980s facility really attract quality tenants when there are newer options available? The math has to work – and at $10 million for the real estate alone, Swervo is betting that the location and existing infrastructure provide enough value to justify the conversion costs. We’ll see if that gamble pays off.
