WASHINGTON— Cloud Capital has launched a new core data center investment strategy through a programmatic joint venture with Realty Income and a global institutional investor, creating a platform seeded with more than $6 billion in assets.
The new initiative, known as the Cloud Capital Core Joint Venture Strategy, will initially focus on stabilized hyperscale data centers in the United States that are leased to investment-grade tenants under long-term, triple-net lease agreements. The partners also plan to expand the strategy into Europe over time.
The venture is being launched with three initial investments valued at more than $6 billion, providing investors with exposure to digital infrastructure assets benefiting from growing demand for cloud computing and artificial intelligence applications.
Cloud Capital said the strategy will leverage its vertically integrated investment platform, proprietary deal pipeline and long-standing relationships with hyperscale tenants to build a portfolio concentrated in high-barrier-to-entry markets.
“Drawing on more than 30 years of investing in and leasing some of the world’s largest data centers through multiple cycles, I have seen firsthand the importance of acquiring and developing high-quality assets and long-term tenant relationships,” said Hossein Fateh, founder and CEO of Cloud Capital. “We believe this positions our partners to benefit from exposure to highly strategic data centers underpinned by accelerating demand for cloud and AI applications.”
Shariar Mohajer, the firm’s president and chief investment officer, said increasing specialization is becoming more important as digital infrastructure continues to evolve as an institutional asset class.
“As the digital infrastructure market continues to mature, specialized sector expertise and proprietary sourcing are increasingly critical,” Mohajer said. “Our dedicated platform, longstanding industry relationships and vertically integrated capabilities enable us to access differentiated investment opportunities and build portfolios with resilient cash flow, attractive long-term fundamentals and long-term value creation for our partners.”
The Core Joint Venture expands Cloud Capital’s suite of investment offerings, which also includes core-plus, opportunistic and value-add strategies targeting various segments of the data center market.
For Realty Income, the partnership represents a continued expansion into digital infrastructure as part of its broader real estate investment strategy.
“Today’s announcement affirms the strength of our business model and its ability to translate across sectors, including digital infrastructure,” said Sumit Roy, president and chief executive officer of Realty Income. “We are pleased to advance a scaled digital infrastructure platform while deepening our programmatic relationship with Cloud Capital.”
Roy added that the combination of investment-grade tenants, long-duration triple-net leases and high-quality data center assets aligns with Realty Income’s disciplined capital allocation strategy.
Goldman Sachs & Co. LLC served as financial advisor to Cloud Capital, with Jones Day acting as legal counsel. Realty Income was advised by Moelis & Company LLC, while Latham & Watkins LLP served as legal counsel.
The launch comes as institutional investors continue to increase allocations to digital infrastructure, driven by sustained growth in cloud services, artificial intelligence workloads and enterprise demand for data center capacity. Data centers have emerged as one of the fastest-growing sectors within commercial real estate, attracting significant investment from public and private capital seeking stable, long-term cash flows.
