The basics:

• CoreWeave acquires NEST data center for $322M
• Former Merck HQ spans 2M sq. ft. and includes 50-MW substation
• Site offers 36 acres for future redevelopment and AI growth

In a shakeup for the sprawling 102-acre campus in Kenilworth, CoreWeave has purchased a data center site at NEST for $322 million.

Newmark announced the sale at the 2 million-square-foot Northeast Science and Technology Center Aug. 1. The commercial real estate services company represented the sellers, Onyx Equities LLC and Machine Investment Group. Cushman & Wakefield worked on behalf of the buyer, Newmark said Aug. 8. In addition to 11 Nest, the deal includes an 27-acre land parcel immediately surrounding the building.

The Onyx/Machine JV acquired the former Merck headquarters in 2023 with plans to lean into and enhance the campus’s life sciences legacy. According to Newmark, the partners paid $187.5 million for the property. The latest sale underscores a market shift driven by AI adoption and necessary infrastructure to support it.

In addition to other tenants, like Revlon, CoreWeave signed on with a long-term lease last October for the entirety of 11 NEST. The company also planned to invest $1.2 billion into that data center site — its first in New Jersey. Formerly a lab and manufacturing building, ownership at the time said it planned to invest more than $50 million in that effort.

“We are pleased to announce that CoreWeave has purchased the 280,000-square-foot building it had already secured by lease and the land immediately around it at Northeast Science and Technology Center in Kenilworth, NJ. Onyx Equities and its partner Machine Investment Group continue to own and operate the balance of the site and has more than 2 million square feet of space to lease on the campus,” Onyx told NJBIZ.

‘Strategic potential’

Co-Head of Strategic Advisory Andrew Warin and Executive Vice Chairman Josh King led the Newmark team in collaboration with Head of Data Center and Digital Infrastructure Capital Markets Brent Mayo. Co-Head of U.S. Capital Markets Doug Harmon and Co-Head of Global Debt & Structured Finance Jordan Roeschlaub, who represented the sellers, also provided oversight.

“This transaction underscores the accelerating demand for high-powered, well-located sites capable of supporting AI and cloud workloads at scale,” said Harmon. “CoreWeave’s investment in Kenilworth reflects the site’s strategic potential and the market’s appetite for next-generation infrastructure aligned with near-term power delivery.”

Located at 2000 Galloping Hill Road, NEST comprises nine buildings featuring office, lab, R&D and support facilities. Importantly, it also offers robust utility infrastructure, including a 50-megawatt substation, cogeneration and chiller plants, and a central boiler facility.

Beyond what’s there, the property also offers 36 acres of land for future redevelopment.

On-campus amenities include a cafeteria, fitness center, conference center, auditorium, heliport, underground parking and on-site management office.

The sale marks a major repositioning on the mixed-use, life sciences-leaning campus. It comes as demand and utilization of and for AI boosts the need for data centers.

Data center low down

Looking ahead, JLL projected that drive would continue to accelerate throughout this year.

“This milestone sale builds on our longstanding track record of delivering strategic outcomes for data center investors and developers,” commented King. “As AI infrastructure evolves, we’re seeing capital flood into locations where power, entitlement and connectivity converge—and this site checks every box.”

It’s also just the latest major announcement from CoreWeave this summer. In July, the company announced a$9 billion deal to acquire Core Scientific. A couple weeks later, CoreWeave said it will  invest $6 billion in a new AI data center, across the border in Pennsylvania. Based in Roseland, the leading cloud provider specializes in AI infrastructure.

NEST offers a strategic position near transportation arteries, as well as a deep talent pool and research institutions.

In addition to the Garden State Parkway, it offers direct access to Interstates 78, 278 and 95. Meanwhile, Newark Liberty International Airport is 8 miles away and Jersey City 15 miles, offering strong regional connectivity as well as proximity to a deep talent pool and research institutions.

Editor’s note: This story was updated at 11:51 a.m. ET on Aug. 8, 2025, to update the buyer’s representation and include specifics regarding the acreage included in the purchase.