Mitsubishi Corporation has entered the US data center market.Japanese company forms joint venture with Austin-based REIT digital realty The company will purchase a 65 percent stake in two data centers being built in the Dallas-Fort Worth metro area for an initial price of $200 million. wells fargo Securities Served as financial advisor to Digital Realty.
Each partner will fund a pro rata share of the remaining $100 million in costs associated with completing the first phase of development. This he will be operational in the second half of 2024 and initially he plans to offer 16 MW of IT capacity.
Digital Realty will keep the remaining 35% interest and handle the day-to-day operations of the venture, receiving regular fees.
Also read: AI is changing the data center: JLL
The developer broke ground on the two facilities in 2022, with a budget of $400 million for the first phase. Both future data centers are pre-leased to S&P 100 customers, with the potential to expand capacity up to 48 megawatts over the lease term and development costs of up to $800 million.
Digital Realty is building two data centers in the metroplex at 2501 Edmonds Lane in Lewisville and 1505 Ferris Road in Garland, according to data from CommercialEdge. The company has registered both projects with the Texas Department of Licensing and Regulation in 2022, with associated costs for each estimated at $54.9 million. The development areas are 182,969 square feet and 181,200 square feet, respectively.
Commercial real estate executive We reached out to the developer to confirm whether these are indeed the properties involved in the contract with Mitsubishi Corporation, but did not immediately receive a response at the time of publication.
A series of high-value ventures
Last year, Digital Realty entered into several similar partnerships. Most notably, he founded a $7 billion venture company. black stone Toward development of four new data centers in Northern Virginia, Paris, and Frankfurt. In August, the company sold an 80% stake in three data centers. TPG Real Estate Partners For $1.5 billion.
The company’s revenue was $1.4 billion in the fourth quarter of last year, an 11% increase from the same period last year, but a 2% decrease from the previous quarter, according to its latest financial report.
The REIT currently has 13 operating data centers in the metroplex area, spanning more than 2.8 million square feet. The 168-acre Convergence campus in Lewisville is the largest, consisting of 829,372 square feet in 10 buildings connected to a central utility plant.
Dallas-Fort Worth market remains strong, but land is in short supply
Dallas-Fort Worth had 331.9 megawatts under construction and an additional 2.2 gigawatts in the planning stages at the end of last year, according to a recent report. JLL report.
While demand in the metroplex remained high through the second half of last year, securing suitable space for development has become a significant hurdle, the same survey shows. Dallas-Fort Worth absorbed a total of 593 megawatts last year as users actively pre-leased capacity.
As a result, the market is experiencing an increase in both land prices and deployment density. This does not prevent developers from starting projects such as: skybox data centerConstruction of the 300-megawatt campus began in November last year.
