Digital Realty, a Real Estate Investment Trust (REIT) specializing in digital infrastructure, announced numerous transactions that will expand its data center development capacity in Kansas City, increase its ownership of African data center operator Teraco, and grow its private capital platform by acquiring investment firm Columbia Capital.
According to a Digital Realty press release, the company has purchased 1,440 acres at Astra Enterprise Park near Kansas City for US$ 475 million in cash and operating partnership units. The site is intended for hyperscale data center development and marks Digital Realty’s entry into the Kansas City market which is the seventh-largest U.S. data center market when including capacity under construction and in planning. Digital Realty also signed an energy service agreement with the local utility that will provide 600 MW of power by early 2028, increasing to two GW at full build-out and support development.
Digital Realty is also increasing its ownership of Teraco Africa’s largest carrier-neutral data center and colocation provider, to 77 percent through the acquisition of a 16 percent stake from minority shareholders for approximately US$ 650 million. The transaction will be funded primarily through the issuance of 3.4 million common shares and is a key part of Digital Realty’s colocation and connectivity business.
Andy Power, President and CEO, Digital Realty, commented on the Kansas City expansion and Teraco ownership, saying, “These transactions support the continued momentum of Digital Realty’s three core pillars of growth. The purchase of land in the Kansas City metro enhances our ability to serve hyperscale customers’ near term requirements, while our increased stake in Teraco strengthens our position in Africa’s leading data center platform and supports the continued growth of our global colocation and connectivity business.”
Matt Mercier, CFO, Digital Realty, offered his opinion from a financial perspective and said, “Taken together, these transactions are expected to further enhance Digital Realty’s growth profile, while maintaining our balance sheet discipline and positioning the company for the continued investment opportunity we see ahead.”
In a separate transaction, Digital Realty plans to acquire investment firm Columbia Capital for approximately US$ 485 million, primarily through the issuance of 2.3 million common shares. The deal includes a multi-year lockup period and performance-based earnout provisions, Columbia Capital had previously partnered with Digital Realty on several projects, including investments in Teraco and subsea cable landing station developer Vela Infrastructure.
Andy Power also commented on Digital Realty’s plans to acquire Columbia Capital by saying, “Our history of collaboration with Columbia Capital reflects a shared long-term perspective while providing additional flexibility to support the scaling of both our hyperscale development pipeline and our private capital platform.”
These investments will be funded principally through the issuance of 6.3 million common shares and operating partnership units at a weighted average price of US$ 197.54 per share or unit. The Teraco and Columbia Capital transactions are both expected to close in the second half of 2026, subject to customary closing conditions.