Digital Realty, Mitsubishi Join Forces on Two Dallas Data Centers

Digital Realty and Mitsubishi Corporation have formed a new joint venture to support the development of two data centers in the Dallas metro area, which are 100% pre-leased to an S&P 100 investment-grade customer on a long-term basis. Mitsubishi has acquired a 65% equity interest in the venture for an initial contribution of approximately $200 million, while Digital Realty maintains a 35% interest and will manage the development and day-to-day operations of the joint venture, for which it will receive customary fees. Each partner will fund its pro rata share of the remaining $100 million estimated development cost for the first phase of the project, which is slated for completion and commencement in late 2024. 

The two data centers commenced construction in the fourth quarter of 2022, with the first phase slated to deliver 16 megawatts (MW) of initial data center capacity. The budget for the first phase of these yield-on-cost developments is approximately $400 million.

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