Using high resolution, two-dimensional hydrodynamical simulations, we investigate the evolution of a self-gravitating multi-phase interstellar medium in the central kiloparsec region of a galactic disk. We find that a gravitationally and thermally unstable disk evolves, in a self-stabilizing manner, into a globally quasi-stable disk that consists of cold (T < 100 K), dense clumps and filaments surrounded by hot (T > 10^4 K), diffuse medium. The quasi-stationary, filamentary structure of the

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... gas is remarkable. The hot gas, characterized by low-density holes and voids, is produced by shock heating. The shocks derive their energy from differential rotation and gravitational perturbations due to the formation of cold dense clumps. In the quasi-stable phase where cold and dense clouds are formed, the effective stability parameter, Q, has a value in the range 2-5. The dynamic range of our multi-phase calculations is 10^6 - 10^7 in both density and temperature. Phase diagrams for this turbulent medium are analyzed and discussed.