Related Companies’ data center unit has $45B development pipeline
Related Digital is investing a minimum of USD 500 million in initial sponsor commitments toward the buildout of its development pipeline. It is also launching a multi-phase capital-raising effort to unlock up to USD 8 billion in private capital.
American real estate firm Related Companies has announced the formal launch and capitalization of Related Digital, a vertically integrated data center development and investment platform.
With a near-term USD 45 billion development pipeline, Related Digital will deliver digital infrastructure solutions for artificial intelligence (AI) and cloud hyperscale technology companies.
Related Digital is investing a minimum of USD 500 million in initial sponsor commitments toward the buildout of its development pipeline, underscoring its confidence in the platform’s unique position in this rapidly evolving market.
To fuel its continued growth, Related Digital is also launching a multi-phase capital-raising effort to unlock up to USD 8 billion in private capital. Morgan Stanley is advising on the first phase of the platform's capital formation efforts, with initial capital to be committed starting in the second half of 2025, according to a media release.
Related Digital’s first North American data center project, located in Ontario, Canada, is a pre-leased 64-megawatt (MW) data center expansion that will be delivered to a leading hyperscale customer beginning this summer.
With a robust data center development pipeline of more than 5 gigawatts (GW) of near-term power across the US and Canada, Related Digital has the capabilities, depth of expertise and national scale to help hyperscale companies significantly grow their data center capacity on an accelerated timeframe, the media release said.
Related Digital’s vertically integrated platform, which includes in-house construction and engineering, steel fabrication, mechanical and BMS contractors, supply chain and materials procurement, site selection and land development, and entitlement and zoning, provides a unique competitive advantage and certainty of execution for partners, the company said.
“Digital infrastructure is one of the most remarkable growth categories and asset classes that I have seen in my more than 35 years in real estate development, driven by the unprecedented demand for data centers with reliable access to significant energy sources,” said Jeff T. Blau, CEO of Related Companies. “As one of the only data center developers in the market with nationwide capabilities across development, complex infrastructure construction, expert supply chain procurement and clean power generation through our strategic partnership with energyRe, Related Digital is uniquely positioned to partner with major technology companies to execute on this massive opportunity.”
To accelerate these efforts, Related Companies has appointed Brent Behrman as Chief Investment Officer of Related Digital, effective immediately. Behrman, a seasoned executive with extensive strategic experience in data center development, engineering, sales and supply chain management, was previously Chief Sales Officer at CyrusOne, the global data center developer and operator.
Greg Myers, previously Global Head of Capital & Partner Solutions and a member of the Executive Committee at Vista Equity Partners, has been named Chief Financial Officer of Related Digital.
