Digital Realty has established a new valuation standard for AI infrastructure by acquiring three leased AI data centers for $27 million per megawatt. This price marks a significant departure from previous lease valuations in competitive markets, which typically ranged between $400,000 and $550,000 per megawatt for top-tier facilities, and between $100,000 and $250,000 for lower-quality sites. Unlike lease rates, the acquisition price reflects an investor's commitment for fully operational, revenue-generating AI data centers.
#Why is the Megawatt Metric Important?
As a leading data center operator listed on the NYSE under the ticker DLR, Digital Realty manages over 300 data centers in more than 55 metropolitan areas across six continents. Being the largest cloud- and carrier-neutral data center real estate investment trust means that the company does not favor any particular cloud providers. With significant activities in leasing, including over $1 billion in new leases in 2025 for the second year running, and a notable collaboration with NVIDIA to build an AI Factory Research Center, Digital Realty plays a pivotal role in the evolving data center landscape. Recognized as the “AI Data Centre of the Year” at the 2024 Datacloud Global Awards, the company's influence in AI infrastructure continues to grow.
#What Impact Does This Have On Crypto Companies?
The new benchmark of $27 million per megawatt is crucial for assessing companies transitioning from Bitcoin mining to AI data services. Firms like Hut 8 and TeraWulf, which previously focused on energy-intensive Bitcoin mining, are now being compared to established data center REITs such as Digital Realty and Equinix. The metric used for this comparison is enterprise value per megawatt, which influences how investors measure the value of these transitioning companies.
#Why Should Investors Pay Attention?
The establishment of the $27 million per megawatt benchmark signals that AI infrastructure is now considered a premium asset. These are stabilized, revenue-generating assets with established tenants. This valuation provides a reference point for other prospective deals. Investment firms, private equity companies, and competing REITs have a new standard to use when pricing AI data center transactions.
For investors involved with crypto, this newly set benchmark alters the valuation landscape for firms balancing between cryptocurrency mining and AI-centric operations. If a company like Hut 8 or TeraWulf has large power capacity and can validate its transition to AI capabilities, the potential value based on Digital Realty’s pricing could far exceed its current market standing.
Transitioning from a mining facility to a fully operational AI data center demands substantial investments in cooling, networking, security, and compliance infrastructures, along with long-term contracts with reliable tenants. These investments justify the premium valuations associated with AI infrastructure.