New York-based property developer Related Companies, best known for shaping Manhattan’s skyline with Hudson Yards, is now pivoting to a different kind of infrastructure—data centers. As artificial intelligence reshapes the tech industry, Related is wagering that the real estate gold rush of the future won’t be skyscrapers, but the massive, energy-hungry facilities powering AI’s next leap.
The firm has launched Related Digital, a new venture aimed at building and investing in hyperscale data centers across North America. With plans to raise up to $8 billion, Related has already committed at least $500 million of its own capital. Morgan Stanley is advising on the fundraising, with initial investments expected later this year.
Related plans to launch its first major project, a data center in Ontario, Canada, this summer for an undisclosed hyperscale customer. But that’s just the beginning. The company has secured a pipeline of data centers expected to consume more than 5 gigawatts of power—enough electricity to supply millions of households. The firm sees a $45 billion market chance as demand for AI computing surges.
Technology titans Amazon, Google, and Microsoft, and data center builders Equinix and QTS, have been competing to develop AI infrastructure. The frenzy escalated after OpenAI’s ChatGPT brought AI into the mainstream, pushing the industry into a capacity arms race. Now, securing power is becoming as crucial as securing land.
“We saw an overwhelming demand from tech companies,” Related CEO Jeff Blau said. “The need for data center development is massive, and we already have the execution capabilities.”
To solidify its position, Related has been aggressive in securing power deals, knowing that energy constraints pose one of the biggest hurdles for new data centers. Some places are expected to use a huge amount of electricity, up to five gigawatts, similar to what entire cities need. Due to this high demand, power companies are making people wait longer for connections. Developers now have to make long-term energy deals before starting construction.
Related has mastered large-scale building projects, giving the company a strong advantage. They have transformed entire city areas with major projects like Hudson Yards in New York and The 78 in Chicago. Now, they are applying their expertise in real estate and smart energy planning to focus on AI infrastructure. They aim to become an important name in the growing data center industry.
These large data centers are very important for AI’s growth, and Related’s new plans could change how people see the company. It might become known not only for constructing buildings but also as an essential part of building the digital world.
