Digital Realty, a global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, has announced a joint venture with Mitsubishi Corp to develop two data centers in the Dallas area. These data centers are 100% pre-leased to an S&P 100 investment-grade customer on a long-term basis.
Headquartered in Austin with an office in Dallas, Digital Realty’s Chief Investment Officer Greg Wright expressed excitement about expanding their partnership with Mitsubishi. This joint venture, which leverages their Japanese partnership in the United States, aims to support their customer’s data center requirements. Mitsubishi has acquired a 65% equity interest in the venture for an initial contribution of around 0 million, while Digital Realty will maintain a 35% interest and manage the development and operations.
The construction of the two data centers began in the fourth quarter of 2022, with the first phase expected to deliver 16 megawatts of initial data center capacity. The total budget for the first phase is approximately 0 million. The customer has the option to expand the projects up to 48 MW of total IT load during the initial lease term, potentially increasing the combined budget to 0 million.
Wells Fargo Securities acted as the financial adviser to Digital Realty on this transaction. The first phase of the project is scheduled to launch in late 2024. This partnership reflects a strategic move by both companies to meet the evolving demands of the data center industry.
