A data center owned by COPT Data Center Solutions and operated by Virginia-based defense contractor Northrop Grumman for the Virginia Information Technology Agency (VITA) has sold for $44m, according to commercial real estate publication Richmond BizSense.
Launched in 2007, the Commonwealth Enterprise Solutions Center (CESC) serves a number of state agencies. The facility totals 193,000 sq ft (17,930 sq m), split over two levels on a 28-acre site.
The buyer is an unnamed entity “tied to New York-based Global Securitization Services,” a financial data company whose subsidiaries include Romulus Funding Corp., Pooled Investment Notes Capital LLC and MSC Holding Corp.
Like cat and dog
Last year, VITA, which is responsible for the state of Virginia’s technology infrastructure, filed a $300m lawsuit against Northrop Grumman in an attempt to disassociate itself from the defense contractor and their $2.3bn deal, in favor of several smaller contracts with specialized vendors. The contract is set to expire in 2019.
Around the same time, the CESC’s backup system failed, causing a five-hour outage and further exacerbating tensions between the two parties.
VITA claimed that Northrop Grumman failed to meet the state’s IT requirements and that it was costing taxpayers millions by refusing participation of alternative vendors.
The company retaliated, seeking $10m in damages for alleged breach of contract, stating that an agreement reached with top officials was deliberately sabotaged by the agency.
Nearby Southwest Enterprise Solutions Center (SWESC) in Lebanon, Russell County, also operated by Northrop Grumman, recently had its mainframe and backup systems replaced by IBM, following yet another standoff between VITA and Northrop Grumman.