Digital Realty has agreed to acquire 424 acres of undeveloped land near Washington-Dulles International Airport that it says provides the foundation for its next phase of growth in Northern Virginia.
WASHINGTON, DC—Data center provider Digital Realty has signed an agreement to purchase 424 acres of undeveloped land in Loudoun County, VA adjacent to Washington-Dulles International Airport for $236.5 million.
The San Francisco-based firm states that the property is located near bulk transmission lines, a major fiber path, as well as less than four miles from Digital Realty's existing data center campuses in Ashburn, VA. The transaction calculates out to approximately $558,000 per acre.
“We are pleased to expand our footprint and strengthen our position in Northern Virginia, the largest and most important data center market in the world,” says Digital Realty CEO A. William Stein. “Customers are looking for long-term commitment, along with the flexibility to support their deployments and connection nodes, as well as the ability to land and expand within the same location—all of which align perfectly with our Connected Campus strategy.”
Digital Realty SVP of acquisitions Michael Darragh says Digital Realty has leased more than 100 megawatts of capacity in Northern Virginia over the past 12 months and the firm continues to see broad-based demand going forward. “This land acquisition provides the foundation for Digital Realty's next phase of growth in Northern Virginia and will enable us to continue to support years of customer expansion, while broadening our positive impact on the local economy,” he adds.
The company states that the launch of development at the site will be subject to market demand, and “delivery will be phased to meet future customer growth requirements upon build-out and lease-up of the company's existing Ashburn campus capacity.”
The acquisition builds upon Digital Realty's investment in Northern Virginia, where it has maintained a meaningful presence since 2007. Over the past six years, Digital Realty has invested approximately $1.3 billion in new development and currently employs more than 160 full-time employees in Northern Virginia. The transaction is expected to close in the fourth quarter of 2018.
Digital Realty also announced today the $1.8-billion acquisition of Latin America data center provider Ascenty.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
