Digital Realty and Mitsubishi Initiate Joint Venture for Dallas Data Center Development

One of the biggest worldwide providers of cloud- and carrier-neutral data centers, colocation, and interconnection solutions, Digital Realty, in collaboration with Mitsubishi Corporation, have disclosed the establishment of a new joint venture to enable the construction of two data centers in the Dallas metro area. These facilities are entirely pre-leased to a long-term S&P 100 investment grade client.

At an initial investment of approximately $200 million, Mitsubishi has acquired a 65% ownership stake in the partnership, with Digital Realty holding a 35% interest. Digital Realty will manage the joint venture’s development and day-to-day activities in return for regular fees. The project’s first phase, anticipated to be finished and started in late 2024, would cost around $100 million, with each partner covering its pro rata share.

With a global data center presence comprising over 300 facilities located in more than fifty metropolitan areas across over twenty-five nations and six continents, Digital Realty offers its clients accessibility to the interconnected communities. During the deal with Mitsubishi, Wells Fargo Securities played the role of Digital Realty’s financial advisor.

The first segment of the two data centers’ development, which commenced in the fourth quarter of 2022, is forecasted to deliver 16 megawatts (MW) of initial data center capacity. Approximately $400 million is allocated for the first stage of these yield-on-cost initiatives. During the first lease period, the client has the option to extend the projects up to 48 MW of total IT load, with the potential to increase the combined budget to $800 million based on present estimates of development costs.

“We are thrilled to grow our relationship with Mitsubishi,” said Greg Wright, Chief Investment Officer of Digital Realty. “This development joint venture supports our customer’s data center requirements with a long-term, like-minded investor while leveraging the success of our long-standing Japanese partnership into the United States. Through the deal, Digital Realty’s balance sheet is strengthened and more money is provided to carefully meet the longer-term capacity needs of our stakeholders.”

Another announcement made by Digital Realty was the opening of NRT12, the company’s second data center at the NRT complex in Inzai City, Chiba Prefecture, Japan. In order to satisfy the rising need for data centers that are scalable, adaptable, and suitable for artificial intelligence in the Tokyo metropolitan region, NRT12 brings the overall capacity of the campus up to 73 megawatts (MW), adding 34 megawatts (MW) of critical IT infrastructure capacity.

Through its 50/50 joint venture in Japan with Mitsubishi Corporation, Digital Realty is increasing its capacity at the NRT campus. This expansion is being accomplished through MC Digital Realty (MCDR). NRT12 is especially built to serve demanding workloads such as artificial intelligence and generative artificial intelligence, machine learning, and virtual reality. It has the same strong and adaptable architecture as other data centers that have recently been created by MCDR in Japan, such as the adjacent NRT10 in Inzai and KIX13 in Osaka.

High-density power of up to 70 kilowatts (kW) per rack, innovative Air-Assisted Liquid Cooling (AALC) technologies, low-latency networks, and high-speed connectivity are some of the features that NRT12 comes equipped with. These features would allow it to meet the requirements of high-performance computing (HPC), machine learning, virtual reality, and augmented reality workloads, as well as workloads related to artificial intelligence and generative artificial intelligence.

The NRT campus offers a unique service called Campus Connect. This interconnectivity service allows clients to treat the infrastructure across different data centers on campus as one entity. This enables seamless data exchange for artificial intelligence and digital transformation ventures. The modularity of the data centers allows for the dynamic scaling of server configurations to better manage growing AI installations.

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