Digital Realty YYZ10
FJI qualification held or pending: the full four-document gate, including project-specific government evidence, has not yet been accepted. Qualification evidence and decisions →
Project status: Operator-listed facility; AI-specific demand and site economics unestablished. Capacity scope: Current comparable IT capacity not established in reviewed profile. How we verify evidence.
← Back to project index- Location
- Ontario / Markham / Toronto metro
- Readiness
- Existing facility / readiness unverified
- Status
- Operator-listed facility; AI-specific demand and site economics unestablished
- Confirmed companies
- Digital Realty
- Next milestone
- Contracted capacity, lease commencements and documented customer or density upgrades.
- Reviewed
- October 6, 2026
Expanded analysis · Original disclosures linked below · CAD and USD preserved as labeled · Company statements attributed; interpretations labeled.
The one-minute investment takeaway
YYZ10 is an existing infrastructure offering whose investor relevance depends on what customers actually lease and pay for. Its Toronto-area location and operator connection are documented. The next step is to establish contracted demand and the cost of meeting it. Square footage and redundancy specifications provide physical context; they cannot substitute for an earnings model.
Readiness basis: Classification of evidence in the reviewed profile; strongest documented phase, not full-campus completion. Operator-listed facility; AI-specific demand and site economics unestablished Readiness source →
What the sources establish
- Operator / company disclosure Physical scope. Digital Realty lists YYZ10 at 371 Gough Road in Markham with a one-story, 104,500-square-foot building, 2N UPS redundancy and N+1 cooling. The page describes deployments from single cabinets to multi-megawatt suites. Primary source →
- Operator / company disclosure Evidence boundary. The reviewed facility page does not identify a dedicated AI cluster, campus investment amount, current operating IT MW, utilization or customer-specific contract. Its reliability specifications establish a marketed infrastructure configuration, not productive computing demand. Primary source →
Who receives the money?
Our analysis of disclosed roles. Revenue routes are business-model interpretations, not estimates of booked project revenue.
| Company / exposure | Economic role | What investors need to establish |
|---|---|---|
| Digital Realty / DLR | Named operator offering colocation infrastructure. | Lease income and services must be assessed against operating expenses, maintenance and financing; YYZ10 economics are undisclosed. |
| Customers | Lease space and power and deploy their hardware. | A contract can precede billing; lease commencement and fit-out readiness determine when owner cash begins. |
| Equipment suppliers | Possible customer or facility procurement roles. | No named project-specific equipment order is established; sector exposure is insufficient evidence. |
How financially meaningful is it? Analyst interpretation
Our analysis: the distinction between contracted backlog and commenced rent is central. Space can be available, contracted, fitted out and billing at different times. Customer-funded fit-out and owner-funded upgrades can produce very different cash requirements. At the company level, evaluate recurring cash generation after maintenance and funding, including dilution from new equity. This single facility is not a proxy for Digital Realty’s entire portfolio or its AI growth.
Modeled annual site cash contribution = commenced base rent + net service income − non-recovered operating costs − maintenance investment. Development spending and financing sit outside that simple operating bridge and still affect shareholder returns.
Hypothetical illustration: delaying the start of an assumed CAD 1 million monthly lease by six months shifts CAD 6 million of revenue beyond the original schedule. It does not automatically imply a permanent loss of the full lease value, but carrying costs continue. No such lease or delay is established at YYZ10.
Milestones that would change the assessment
| Milestone | Evidence to watch |
|---|---|
| Customer commitment | Look for a named deployment or disclosed leased capacity, with contract scope and start dates. |
| Fit-out and power delivery | Verify that customer-required density can be delivered at the agreed economics; general redundancy is insufficient. |
| Billing and cash return | Track commencement and renewals, then compare cash contribution with upgrades and capital funding. |
What could break the investment case?
Our analysis: Density retrofits can cost more than expected and reduce usable space. Customer start dates or renewals can disappoint. Power pass-through may lift reported revenue without improving margin. Higher financing costs can offset stronger leasing, even if a facility performs operationally.
What would change our view?
Our analysis: Our confidence would rise with commenced leases and customer expansion supported by economical upgrades. It would fall if substantial new capital is needed without matching contracted returns or if demand remains unverified despite broad AI marketing.
What remains unknown Not established in this review
IT MW, occupancy, customer identities, AI-specific usage, lease terms, facility earnings and upgrade budget remain unestablished. No equipment supplier or attractive stock valuation is inferred from the operator connection.
Project research for information, not a buy recommendation. Financial illustrations use assumptions, not disclosed site results or management guidance.
Dated appraisal and remaining differences
BBG’s appraisal in Digital Core REIT’s October 7 circular describes 104,308 ft² of gross/net rentable area, about 6.765 MW of critical IT capacity and 100% occupancy at its June 30 valuation date. The report is dated July 29. These are dated appraisal figures, not current metered load or evidence of AI workloads.
The appraisal’s 104,308 ft² includes 48,374 ft² of data-center space and 55,934 ft² of support/office area. Digital Realty’s facility listing states 104,500 ft² and one story; the appraisal describes two stories. DCD’s August 12 report gives 120,040 ft². These area and story-count differences remain unresolved; no silent replacement or aggregation is made.
The BBG appraisal was not based on a new physical inspection. Its occupancy and tenant categories must not be merged with the separate CBRE appraisal in the same circular.
Digital Core REIT’s half-year asset table reports a 90% interest at June 30. Its proposed sale to Digital Realty is not treated here as closed. The issuer scheduled an October 22 EGM; the vote and closing require separate evidence.
BBG appraisal in Digital Core REIT circular · 2026-10-07 · PDF84,87. Scoped check October 19; original whole-profile and readiness dates remain unchanged.
Company investor information & quarterly statements
Digital Realty
Project / facility operator identified in project-specific source; ownership economics and tenant contracts not certified
Official investor & shareholder information · Quarterly financial statements: 2026Q2 ended June30 2026
Digital Core REIT
Reported 90% interest at June 30, 2026; proposed seller in the October 7 circular. A closed transfer has not been verified.
Official investor & shareholder information · Quarterly financial statements: First half of 2026, six months ended June 30, 2026 (issuer reports half-year financial statements)
Corporate disclosures provide company-wide context. They do not establish this project’s revenue, spending, profit, ownership share or operating capacity. Disclosure verification records →