Cloud Capital and Realty Income launch $6B data center joint venture

Cloud Capital announced the launch of its Core Joint Venture Strategy, seeded with three initial investments valued at over $6 billion, in partnership with Realty Income (NYSE: O) and an unnamed global institutional investor.

The joint venture focuses on stabilized hyperscale data center assets leased to investment-grade tenants on long-duration, triple-net leases in the United States, with plans to expand into Europe.

Hossein Fateh, Founder and CEO of Cloud Capital, cited the firm's history of investing in large-scale data centers as a foundation for the strategy. "We believe this positions our partners to benefit from exposure to highly strategic data centers underpinned by accelerating demand for cloud and AI applications," he said.

Realty Income President and CEO Sumit Roy said the announcement reflects the company's approach to capital allocation. "We are pleased to advance a scaled digital infrastructure platform while deepening our programmatic relationship with Cloud Capital, which is vertically integrated with CloudHQ, a best-in-class developer and operator," Roy said.

The Core JV adds to Cloud Capital's existing investment vehicles, which include a Core-Plus Open-End Strategy, an Opportunistic Closed-End Strategy, and a newly launched Value-Add Closed-End Strategy. Since 2020, Cloud Capital claims to have acquired 30 data center assets worldwide valued at over $12 billion.

Goldman Sachs & Co. LLC served as financial advisor and Jones Day served as legal counsel to Cloud Capital. Moelis & Company LLC served as financial advisor and Latham & Watkins LLP served as legal counsel to Realty Income.

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