US real estate company Related Companies has launched a new data center development unit and plans to build out gigawatts of capacity across the US and Canada.
The company this week announced the formal launch and capitalization of Related Digital, a vertically integrated data center development and investment platform.
Related claims a near-term $45 billion development pipeline totaling 5GW across the US and Canada. Related Digital aims to deliver facilities for artificial intelligence and cloud hyperscale companies.
“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.
Related Digital is investing a minimum of $500 million in initial sponsor commitments toward the buildout of its development pipeline and is also launching a multi-phase capital-raising effort to raise up to $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.
Related Digital’s first North American data center project, a 25-acre development located in Ontario, Canada, is a pre-leased 64MW data center expansion set to be delivered to a “leading hyperscale customer” this summer.
The company said its pipeline includes a 1GW 400-acre campus at 8080 Lake Shore Drive in Chicago, Illinois, on the site of the former US Steel South Works. Part of that site will be anchored by the Illinois Quantum & Microelectronics Park, a 128-acre quantum campus that will host PsuQuantum and IBM.
Related Digital is also reportedly aiming to develop a 500-acre, 1GW campus in Illinois; a 600-acre, 1.2GW site in Missouri; and a 115-acre, 250MW campus in Wyoming. Further details weren’t shared.
Related Digital’s data center investment activities will be led through Related Fund Management, Related’s real estate private equity and credit investment manager affiliate.
Blau continued: “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.”
Related has appointed Brent Behrman as chief investment officer of Related Digital. Previously chief sales officer at CyrusOne, Behrman has also held roles at Compass and Digital Realty.
“I am excited to join Related Digital to establish the platform as a premier leader in digital infrastructure during this unprecedented period of digital transformation and global expansion,” Behrman said. “I look forward to working with Jeff and the rest of the leadership team to meet the exploding demand for AI and cloud infrastructure with reliable, innovative, and mission-critical data center solutions.”
Digital Realty co-founder and former CEO Bill Stein has been appointed as an advisory board member for Related Digital.
Founded in 1972, privately-owned Related Companies has more than $70 billion in assets owned or under development. Its investments include mixed-use, residential, retail, office, and hospitality developments. Launched in 2009, Related Fund Management is a multi-strategy real estate investment manager that currently manages approximately $12 billion in funds.
Founded in 2020 by Related Companies, EnergyRe has more than 80 wind and solar projects across the country, representing $35 billion of investment, 16GWs of generation operating or under development, and 500 miles of transmission.
Related has previously provided funding to Applied Digital. The company also owns 85 10th Avenue in New York, which is occupied by Telehouse.
