Digital Realty, TPG form $1.5b hyperscale data center JV in Northern Virginia
Digital Realty and TPG Real Estate have established a joint venture in which TPG will acquire a majority stake in three stabilized hyperscale data centers in Northern Virginia.
Digital Realty will maintain a minority interest in the portfolio while continuing to manage the day-to-day operations of the assets, providing a seamless customer experience.
"Demand for data centers continues to grow rapidly due to data proliferation and the mass adoption of cloud computing. These are long-term trends that we expect will only be accelerated by recent advancements in AI," said Ty Newell, business unit partner with TPG Real Estate. "Located in the largest and most densely connected data center hub in the world, the portfolio is well-positioned to address this demand. We are excited by the outlook for the Ashburn market and look forward to working alongside a world-class partner in Digital Realty."
The three hyperscale data centers were contributed to the joint venture at