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- Digital Realty (NYSE:DLR) and Mitsubishi (OTCPK:MSBHF) Monday announced the formation of 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 (DLR) 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 of initial data center capacity.
- The budget for the first phase of these yield-on-cost developments is approximately $400 million.
- The customer maintains the option to expand the projects up to 48 MW of total IT load during the initial lease term, which could increase the combined budget up to $800 million, based on current development cost estimates.
- Source: Press Release