Harrison Street and American Real Estate Partners (AREP) are investing $1bn (€864m) to develop six data centres in the US.
The companies said they have committed the capital to develop the powered shell data centres representing 2.1m sqft of data centre space in Data Center Alley in Ashburn and Arcola, Virginia.
The joint venture has already broken ground on its first development, ABX-1 at Beaumeade, a 265,000sqft two-story powered shell, the companies said.
Doug Fleit, AREP’s CEO, said: “The demand for more data centres is simply based upon our society’s move to an even more integral life with technology.
“Every aspect of our lives is changing whether it is more connectivity with 5G and more robust streaming entertainment and communications, the inclusion of new augmented reality applications like Meta, self-driving cars and an endless evolution of new technologies and applications.
“We are creating not just exponentially more data but new and ever more useful ways to apply that data. All of this speaks to a long term data centre trend for markets like Ashburn, Virginia.”
Michael Hochanadel, MD and head of digital real estate at Harrison Street, said: “Digital real estate is a core pillar of Harrison Street’s demographically driven investment strategy, and we are thrilled to significantly expand our presence in the world’s most active data centre market.
“This transaction, in partnership with AREP, provides us with unique data centre campuses and immediate scale in an attractive network-dense region ensuring hyperscale cloud providers and high-quality colocation operators have the capacity they need to support their customers.”
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