Key Takeaways
- • Starwood Capital Group launched Starwood Digital Ventures, a dedicated platform to oversee the firm's U.S. and European data center investment strategy, which currently holds approximately $8 billion in committed assets, according to a PR Newswire release dated January 18, 2024.
- • The platform represents a commitment of roughly $8 billion over five years to data center development encompassing 1.5 gigawatts in various stages of development, positioning Starwood as one of the largest privately held data center developers in the United States and Europe.
- • Starwood Capital entered a strategic alliance with Worldwide Mission Critical, a data center consulting and project management firm, to help the platform scale to anticipated growth.
- • Starwood Digital Ventures will draw on funds from various Starwood Investment Vehicles to advance its development pipeline and partner with data center operators.
- • Chairman and CEO Barry Sternlicht cited strong U.S. demand for data center services and artificial intelligence end uses as drivers of continued opportunity in the sector.
Summary
Starwood Capital Group, a private investment firm with a core focus on global real estate, announced the launch of Starwood Digital Ventures, a platform dedicated to overseeing the firm's growing global data center investment strategy. According to the company's announcement, the platform's U.S. and European data center portfolio currently includes approximately $8 billion in assets. Over the past five years, Starwood Capital has committed about $8 billion to data center development encompassing 1.5 gigawatts across projects in various stages, making it one of the largest privately held data center developers in the United States and Europe.
Starwood Digital Ventures will use capital from various Starwood Investment Vehicles to continue developing its pipeline and to partner with best-in-class data center operators. The launch was accompanied by a strategic alliance with Worldwide Mission Critical, a consulting firm that provides design management, bidding and procurement, construction quality control, and integrated testing services for data center projects. Starwood has worked with Worldwide Mission Critical on several projects over the past five years, and the alliance is intended to allow Starwood to scale its data center platform quickly. Worldwide Mission Critical is described as a global owner's representation and project management company with more than 30 design and construction professionals, founded in 2018, that has completed more than 650 projects and maintains more than 3.5GW of data centers under development across five continents.
Barry Sternlicht, Chairman and CEO of Starwood Capital, said the company was "incredibly excited" about the launch, which he said would provide additional opportunities to grow the data center portfolio "amidst strong industry tailwinds." He cited strong demand for data center services in the United States and growing needs to support end uses such as artificial intelligence. Anthony Balestrieri, Managing Director at Starwood Capital, said the firm expects to expand its data center investments domestically and abroad through its relationship with Worldwide Mission Critical, which he described as a valued partner.
Starwood Capital manages approximately $115 billion in assets under management and has raised over $75 billion since its founding in 1991. The firm also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage REIT in the United States, and the non-listed Starwood Real Estate Income Trust (SREIT).
Starwood Digital Ventures will use capital from various Starwood Investment Vehicles to continue developing its pipeline and to partner with best-in-class data center operators. The launch was accompanied by a strategic alliance with Worldwide Mission Critical, a consulting firm that provides design management, bidding and procurement, construction quality control, and integrated testing services for data center projects. Starwood has worked with Worldwide Mission Critical on several projects over the past five years, and the alliance is intended to allow Starwood to scale its data center platform quickly. Worldwide Mission Critical is described as a global owner's representation and project management company with more than 30 design and construction professionals, founded in 2018, that has completed more than 650 projects and maintains more than 3.5GW of data centers under development across five continents.
Barry Sternlicht, Chairman and CEO of Starwood Capital, said the company was "incredibly excited" about the launch, which he said would provide additional opportunities to grow the data center portfolio "amidst strong industry tailwinds." He cited strong demand for data center services in the United States and growing needs to support end uses such as artificial intelligence. Anthony Balestrieri, Managing Director at Starwood Capital, said the firm expects to expand its data center investments domestically and abroad through its relationship with Worldwide Mission Critical, which he described as a valued partner.
Starwood Capital manages approximately $115 billion in assets under management and has raised over $75 billion since its founding in 1991. The firm also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage REIT in the United States, and the non-listed Starwood Real Estate Income Trust (SREIT).
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