Menlo Equities has launched Menlo Digital, a dedicated data center platform. The entity will leverage its existing portfolio, which includes 14 operational facilities, along with multiple others in various stages of development.
Menlo Digital will be focused on the acquisition, development and operation of mission-critical digital infrastructure to meet growing AI data center demand across the U.S.
Menlo Equities developed its first data center in 1998, in Santa Clara, Calif., and since then assembled a portfolio of such facilities. The newly formed platform’s current development pipeline includes several projects spread across multiple major U.S. data center hubs—Northern Virginia, Phoenix, Dallas, Silicon Valley, Portland, Ore., and Richmond, Va.
A consistent expansion in the data center sector
Menlo Digital’s pipeline includes 225 megawatts in Phoenix and Northern Virginia hyperscale campuses, slated to come online in 2026; 350 megawatts spread across additional sites in Richmond, Silicon Valley, Dallas and Northern Virginia, which will be delivered in 2027 and 2028.
At the beginning of the year, the company also partnered with NRG Energy, a Texas electricity provider, for further developments totaling 400 megawatts—with the potential to reach more than 1 gigawatt.
Among Menlo Digital’s ongoing projects is MD-PX1, a five-building facility spread across 38 acres in Phoenix. It is designed to reach 1 million square feet once complete—in the second quarter of 2026. The company already secured 257 megawatts of power. The developer acquired the site for $51.3 million in 2015, according to Yardi Research Data.
Major data center investments in 2025’s first half
The growth of AI has emboldened more investors to step in or scale up their commitments to the sector. One of them is Amazon, which will build a $10 billion cloud computing and AI innovation campus in Richmond County, just east of Charlotte, N.C. The investment marks one of the largest single capital investments in the state’s history.
Blue Owl Capital, Crusoe and Primary Digital Infrastructure secured $7.1 billion in construction funds for the second phase of a data center development in Abilene, Texas. The $15 billion project is expected to include eight buildings and deliver 1 gigawatt by year’s end.
In Phoenix, EdgeCore Digital Infrastructure picked up a 44-acre lot for the expansion of its data center campus in Mesa, Ariz. Plans call for more than 450 megawatts of power and will include over 3.1 million square feet at full build-out.