Digital Realty Plans Kansas City Hyperscale Data Center

Kansas City Emerges as Data Center Hotspot

Digital Realty’s $474M purchase of 1,440 acres in De Soto, Kan., marks its debut in the Kansas City data center scene, per Commercial Property Executive. The deal positions the REIT to develop a massive hyperscale campus at the heart of the Astra Enterprise Park, a 9,000-acre development rising from the grounds of the former Sunflower Army Ammunition Plant. This region is already attracting major players—Panasonic’s $4B EV battery factory broke ground there in 2022—turning the area into a new tech and industrial corridor for the Midwest. Digital Realty’s move underlines the area’s growing appeal for large-scale digital infrastructure.

The Details

The transaction includes a 1,440-acre powered land site, with Digital Realty committed to an Energy Service Agreement with local utility Evergy that will deliver 600 MW of power by early 2028, and expansion potential for up to 2 GW. The first development phase at W. 103rd St. and Lexington Avenue covers 280 acres and will feature nine buildings totaling about 3M SF. The entire project forms part of Astra Enterprise Park’s broader, master-planned 9,000-acre endeavor. Outside Kansas City, Digital Realty is scaling its global reach with two more acquisitions: a $650M increased stake in Africa’s Teraco and a $485M deal for all of Columbia Capital, both set to close in 2026.

Hyperscale Growth Fuels Investment

Digital workloads, AI, and cloud computing are driving record demand. Hyperscale data centers now power CRE growth. Kansas City’s addition to Digital Realty’s portfolio reflects this trend. Major operators are racing to secure land and power before capacity disappears. According to CBRE, US hyperscale inventory exceeded 2.5 GW by late 2025. Vacancy remained below 3%. Digital Realty targets large powered sites and long-term utility agreements. This approach now separates leading REITs from competitors. Its Kansas City site ranks among the largest US data center land deals this cycle.

Why It Matters

Digital Realty entered Kansas City as energy demand surged and geographic diversity gained importance. The company secured 600 MW and can scale to 2 GW. Such scale requires early power planning. Digital Realty is betting on Kansas City as a national data hub. The hyperscale campus also benefits from Astra Enterprise Park. It joins Panasonic’s $4B gigafactory and other industrial users. These tenants seek utility capacity and nearby infrastructure.

From 2016 to 2025, Digital Realty’s assets grew from $12B to nearly $49B, according to Commercial Property Executive. Institutional investors have increasingly targeted data centers as one of the fastest-growing global property sectors. The move matches REIT strategies that lock up land and power. Operators now need both to serve AI, cloud, and edge workloads. These workloads continue flowing into secondary and emerging markets. National vacancy for hyperscale space remains below 3%. Kansas City can capture demand from users leaving Northern Virginia and Silicon Valley.

Power shortages and scarce land could give regional hubs like Kansas City an advantage. For Digital Realty and peers, future growth depends on expandable sites. Utilities must provide multigigawatt commitments before tenants arrive. Competitors pursuing similar strategies include QTS Data Centers and Google. Both companies are targeting large Midwest sites.

What’s Next

Digital Realty will build its Kansas City campus in phases. The first nine buildings should open after 2028. Delivery depends on infrastructure and utility expansion. The REIT is using its $3.25B US hyperscale fund to support development. Kansas City now serves as a flagship project. As AI workloads strain energy and land supplies, more REITs may pursue utility-rich sites. Expect activity at Astra Enterprise Park to increase. Suppliers, cloud tenants, and other partners are already gathering around its scale and power capacity.