Digital Realty Trust, Inc.

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Slightly Bullish +25

Digital Realty plans data center in Seattle, Washington

🏢 Digital Realty has filed plans with the Seattle city council to build a new six-story data center at 301 Virginia Street/1930 3rd Ave.

📍 The proposed site is located in an inner-city area formerly occupied by a Bed Bath & Beyond store and currently used by Cannonball Arts.

🏗️ The development would include a 58,000 sq ft data center along with an R&D lab, office space, and retail area.

📅 Demolition of the existing building and construction could potentially begin in 2027.

🤖 A Digital Realty spokesperson clarified that the facility is intended to be a highly connected, network-dense site rather than an AI data center.

🏛️ The property is owned by Clise Properties, which stated that Digital Realty is conducting independent due diligence on the site's viability.

📊 Digital Realty already operates one existing facility in Seattle, the SEA10 carrier hotel at 2001 Sixth Avenue, offering 400,400 sq ft of colocation space.

🤝 Digital took a majority stake in the Westin Building (SEA10) in late 2020 after previously being a minority owner alongside Clise Properties.

⚠️ Seattle officials are set to introduce a one-year moratorium on new data center developments, which could impact projects already in planning stages.

🗳️ The city council's land use and sustainability committee unanimously voted to recommend the moratorium and accompanying resolution for a full council vote next week.

🏙️ Seattle currently hosts around 30 data center facilities according to local reports.

📉 Mayor Katie Wilson proposed a block on new developments after four companies approached Seattle City Light regarding five large-scale projects totaling 389MW.

🔄 Two of the five proposed large-scale projects have reportedly already been withdrawn by their respective developers.

🏢 The remaining three companies involved in the moratorium discussion include Prologis, Equinix, and Sabey alongside Digital Realty's potential plans.

📝 Clise Properties emphasized that the interaction with Digital Realty is just the beginning of a potentially very long development process.

Bullish Signals
  • Digital Realty has filed plans with the Seattle city council to build a new six-story data center at 301 Virginia Street/1930 3rd Ave, including an R&D lab and office space.
  • The proposed facility would be highly connected and network-dense, leveraging Digital Realty's existing presence in the city with its SEA10 carrier hotel offering 400,400 sq ft of colocation space.
  • Digital Realty took a majority stake in the Westin Building (SEA10) in late 2020, strengthening its position as a leading owner alongside Clise Properties.
  • The company aims to start demolition and construction in 2027, indicating long-term commitment to expanding its data center footprint in Seattle.
Risk Factors
  • Digital Realty's proposed Seattle project faces significant regulatory uncertainty as city officials prepare to introduce a one-year moratorium on new data center developments.
  • The full Seattle City Council is expected to vote next week on the moratorium, which could block Digital Realty's project despite it having already initiated the planning process.
  • Mayor Katie Wilson has expressed interest in blocking new developments after several large-scale proposals totaling 389MW were submitted by companies including Prologis, Equinix, and Sabey.
Full Analysis
Digital Realty has filed plans with the Seattle city council to construct a new six-story data center at 301 Virginia Street/1930 3rd Ave, a site formerly occupied by a Bed Bath & Beyond store and currently home to Cannonball Arts. The proposed facility would cover 58,000 square feet and include an R&D lab, office space, and retail area, with demolition and construction potentially beginning in 2027. A company spokesperson clarified that the project is intended as a highly connected, network-dense facility rather than an AI data center. The property is owned by Clise Properties, which stated that Digital Realty is conducting independent due diligence to assess the site's viability for future development needs. This proposal coincides with Seattle officials preparing to introduce a one-year moratorium on new data center developments following unanimous support from the city council's land use and sustainability committee. The timing creates uncertainty regarding whether Digital's project, which has already initiated the planning process, will be permitted if the full council adopts the ban next week. Digital Realty currently operates an existing facility in Seattle known as SEA10, located at 2001 Sixth Avenue within the Westin Building. This 34-story structure, originally built in 1981, offers 400,400 square feet of colocation space with a capacity of 13MW. Digital acquired a majority stake in the building from Clise Properties in late 2020. The city currently hosts approximately 30 data center facilities, and Mayor Katie Wilson has expressed interest in blocking new developments after several large-scale proposals totaling 389MW were submitted by companies including Prologis, Equinix, and Sabey.