Related Companies Eyes $8B Data Center Capital Raise
By Andrew Coen March 27, 2025 1:51 pm
reprints
Related Companies is joining the recent commercial real estate surge into data center investments.
The developer giant announced Thursday plans to raise up to $8 billion of private capital for its newly launched Related Digital platform that will invest in data center projects in the U.S. and Canada. Related said its investors have committed a minimum of $500 million toward the buildout of the $45 billion project development pipeline.
“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,” Jeff Blau, CEO of Related Companies, said in a statement. “Related Digital is uniquely positioned to partner with major technology companies to execute on this massive opportunity.”
Bloomberg first reported the Related Digital launch.
Initial capital for the Related investment will be committed starting in the second half of 2025, with Morgan Stanley serving in an advisory role for the initial phase, according to Related.
The first Related Digital data center project, located in Ontario, Canada, is pre-leased and will deliver 64 megawatts to hyperscale customers starting this summer.
The Related Digital $45 billion near-term development pipeline also includes a 128-acre data center campus at 8080 Lake Shore Drive in Chicago at the former site of U.S. Steel South Works. Related is targeting more than 500 acres of data centers in Illinois, 600 acres in Missouri, and 115 acres in Wyoming that will produce over 2,000 megawatts.
Related also announced its first three advisory board members for Related Digital would include Bill Stein, executive managing director and chief investment officer at Primary Digital Infrastructure, who co-founded Digital Realty Trust; Phil Horstmann, founder of data center provider Ascent; and Miguel Prado, CEO of energyRe, a renewable energy company founded by the principals of Related Companies.
Andrew Coen can be reached at acoen@commercialobserver.com
