- Related Cos. has launched Related Digital, a new data center platform with $500M in initial commitments and a $45B development pipeline.
- The company is aiming to raise $8B as it scales out data center projects across the US and Canada, including a quantum computing facility in Chicago.
- Related Digital joins Prologis and other real estate giants entering the data center space to meet rising demand from AI and cloud hyperscalers.
A Major New Player Enters the Field
New York-based real estate giant Related Cos. is the latest developer to make a major push into digital infrastructure, as reported by Bisnow.
The firm launched Related Digital, a vertically integrated data center platform that already boasts $500M in investor commitments and a development pipeline topping $45B.
Related is looking to raise $8B for the venture, which will begin development in the second half of 2025.
Leadership & Strategy
Related Cos. CEO Jeff Blau will also serve as CEO of Related Digital. The venture brings together veteran Related executives and key hires from the data center and industrial sectors. Brent Behrman, formerly of CyrusOne, joins as chief investment officer, and Vista Equity alum Greg Myers is the new CFO.
Blau said digital infrastructure is “one of the most remarkable growth categories” he’s seen in over three decades of development.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Big Pipeline, Big Ambitions
The company’s first project is a 64-megawatt expansion in Ontario, Canada, set to deliver this summer. Related Digital’s pipeline spans over 5 gigawatts, including major developments in Illinois (1 GW), Missouri (1.2 GW), and Wyoming (250 MW).
Notably, its Chicago facility is slated to house the world’s largest quantum computer in partnership with PsiQuantum.
Strategic Integration
Related Fund Management, the firm’s private equity and credit investment arm, will lead capital allocation.
Industry experts are joining the effort, including advisors from Prologis, Compass Datacenters, and Digital Realty Trust. The platform will prioritize solutions tailored to AI and cloud hyperscalers.
Why It Matters
The move places Related among a growing list of traditional developers pivoting to the booming data center space. Last year, Prologis launched a similar $8B initiative, and in February, the Trump Organization announced its own data center venture.
Despite soaring demand projections, some, including Alibaba chairman Joe Tsai, warn of a potential bubble as investment outpaces real-world usage. Still, developers remain bullish that AI and cloud will drive long-term infrastructure needs.
