The venture marks a strategic shift for the real estate firm, which will secure a 45% stake in a fully leased Northern Virginia facility and two additional projects currently under construction. Cloud Capital will maintain a minority position while leveraging its CloudHQ division to manage property development and ongoing operations.
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Realty Income Bets $1.4 Billion on AI Data Center Expansion
With a commitment to pour $1.4 billion into digital infrastructure, Realty Income is launching a joint venture alongside Cloud Capital and an unnamed global institutional investor. The partnership targets the rapidly expanding artificial intelligence sector, kicking off with stakes in three high-capacity data centers valued at over $6 billion.
Initial capital deployment is slated for the second and third quarters of this year, totaling approximately $700 million. CEO Sumit Roy characterized the move as a disciplined expansion into digital assets, emphasizing the security of long-duration, triple-net leases with investment-grade tenants. The partners intend to use this initial portfolio as a springboard for further acquisitions in the data center market.
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