Digital Realty Trust: Digital Realty and Realty Income Corporation form a data center JV in Northern Virginia

Nov 16, 2023 | Posted by Abdul-Rahman Oladimeji

Digital Realty and Realty Income Corporation established a joint data center venture in Northern Virginia. Following their agreement, the real estate investment firm invested $200 million and will get an 80 percent equity interest in two data centers currently under construction in Northern Virginia, offering up to 48MW. Digital Realty will retain the remaining 20 percent. 

 Digital Realty president and CEO Andy Power said, "We are delighted to partner with Realty Income, a blue-chip net-lease REIT, in their first investment in the data center sector. The formation of this development joint venture supports our customer's build-to-suit requirements with a like-minded, long-term investor as our partner. The transaction also further bolsters and diversifies Digital Realty's capital sources, while enhancing our flexibility so that we can prudently support our stakeholders' longer-term capacity requirements."

Sumit Roy, Realty Income's president and CEO, added, "One of Realty Income's core strategies is to partner with companies that are leaders in their respective industries. To that end, for our initial investment in the net lease data center vertical, we are pleased to partner with Digital Realty, the largest provider of cloud- and carrier-neutral data centers whose global platform is well respected in the industry.”

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