Japanese conglomerate Mitsubishi Corp. and Texas-based Digital Realty, a leading global provider of data center solutions, formed a new joint venture to finance two data centers in Dallas. With an estimated value of $800 million, the new facilities mark Mitsubishi’s first overseas investments in data centers
Under this partnership, Mitsubishi will secure a 65% equity stake in the joint venture for an initial investment of $200 million. Digital Realty will retain a 35% state and take charge of overseeing the development and day-to-day operations of the collaboration.
Construction of the two data centers commenced in the fourth quarter of 2022, with plans to go live later this year expecting to deliver a capacity of 16MW. But, Digital Reality said customers will have the option to scale up the capacity up to 48MW within the initial term of their lease. This will effectively double the budget of these data centers as per current estimates.
Mitsubishi has long been a key player in Japan’s data center market, with its first joint venture with Digital Realty in 2017 valued at $1.8 billion. This partnership, known as MC Digital Reality (MCDR), currently manages a network of nine data centers in Japan, with the most recent addition being a three-story facility having 21MQ of IT capacity in 2023.
As they venture into the U.S. market, both companies are poised to leverage their extensive networks, expertise, and established track records to fortify and expand their data center business across the United States.
Commenting on this strategic collaboration, Digital Realty Chief Investment Officer Greg Wright said, “We are delighted to expand our partnership with Mitsubishi. This development joint venture leverages the success of our established Japanese partnership into the United States while supporting our customer's data center requirements with a like-minded, long-term investor.”
Mitsubishi echoed this sentiment, emphasizing that it is committed to growing its domestic and international business endeavors by focusing on accelerating the supply of sustainable computing resources by leveraging green energy sources.
With Mitsubishi's financial prowess and Digital Realty's operational expertise, this joint venture signifies a significant step forward in meeting the evolving demands of the digital age, promising innovative solutions and unparalleled service to customers in the U.S. and beyond.
