Big moves are happening in Kenilworth, New Jersey, and the ripple effects are going to reshape the state’s future in AI, cloud computing, and next-generation tech infrastructure. CoreWeave, the fast-growing cloud services powerhouse, has officially closed on a $322 million deal to acquire the NEST data center site, a 2-million-square-foot landmark formerly known as the Merck headquarters.
Located at 2000 Galloping Hill Road, the Northeast Science and Technology (NEST) Center is no stranger to innovation. But this latest acquisition signals a massive pivot towards the booming demand for high-capacity AI data centers, digital infrastructure, and scalable power solutions — and CoreWeave is positioning itself right at the heart of it.
From Pharma Labs to AI Superhub
The sprawling 102-acre Kenilworth campus is comprised of nine buildings, including office space, research and development labs, and robust support facilities. What makes NEST particularly valuable in today’s AI-fueled economy is its heavy-duty utility infrastructure: a 50-megawatt substation, cogeneration plants, chillers, and central boiler systems that are primed to handle the high-power demands of AI and cloud computing workloads.
But CoreWeave isn’t just buying a data center — they’re acquiring a strategic launchpad for future development. With 36 acres of land available for redevelopment, the site offers ample room to grow as AI technologies evolve and expand.
A Major Power Play for CoreWeave
This acquisition isn’t a standalone move. CoreWeave, based in Roseland, NJ, has been aggressively expanding its AI data center footprint. Following its recent $9 billion deal to acquire Core Scientific and a $6 billion investment in a new AI campus in Pennsylvania, this Kenilworth purchase represents another key pillar in their national expansion strategy.
With the NEST data center now under its umbrella, CoreWeave is making it clear: New Jersey is going to be a central player in the race to build out AI infrastructure. The company had already leased 280,000 square feet of the site last year but now owns the building and surrounding land, cementing its long-term plans for the region.
Why Kenilworth?
Location, power, and talent. NEST’s prime position along New Jersey’s transportation arteries—direct access to Garden State Parkway, Interstates 78, 278, and 95—makes it a logistical gem. Newark Liberty International Airport is just 8 miles away, with Jersey City 15 miles out. Add in New Jersey’s deep pool of tech talent, proximity to research institutions, and a business-friendly climate, and you have a perfect storm for tech innovation.
The campus isn’t lacking in amenities either. It features a cafeteria, fitness center, conference rooms, an auditorium, a heliport, underground parking, and an on-site management office, providing a self-contained environment for businesses and tech teams.
Market Shift: AI Driving Demand for Data Centers
The sale reflects a broader market trend where demand for AI-ready infrastructure is skyrocketing. Real estate services firm Newmark, which brokered the deal on behalf of CoreWeave and sellers Onyx Equities LLC and Machine Investment Group, highlighted how investors are flooding into properties that blend power availability, strategic location, and digital connectivity.
The former Merck site was initially acquired by Onyx and Machine for $187.5 million in 2023. Since then, it’s been repositioned to serve the life sciences and tech industries. Now, with CoreWeave’s involvement, the focus is clearly shifting towards AI-centric infrastructure — a sector that’s scaling faster than any other.
As AI applications grow more complex, the need for high-performance data centers becomes urgent. This deal is not just a real estate transaction — it’s a clear signal that New Jersey is poised to be a hub for AI infrastructure on the East Coast.
For more business news and updates on New Jersey’s growing tech landscape, visit our Explore New Jersey Business section.
