Digital Realty, the world’s largest cloud- and carrier-neutral data center platform, announced the final close of its inaugural U.S. hyperscale data center fund (the “Fund”), securing $3.25 billion of total equity commitments from a diverse group of global institutional investors, including public pensions, sovereign wealth funds, endowments and foundations, corporate pensions, insurance and asset managers, and family offices.
The Fund is primarily focused on the ownership and development of hyperscale data centers across major U.S. Tier I metros, including Northern Virginia, Santa Clara, Dallas, Atlanta, Charlotte and New York. Digital Realty will retain a 20% ownership interest in the Fund’s portfolio and serves as the manager of the Fund, overseeing operations, leasing, asset management, development, and financing to help ensure a seamless customer experience across all assets, as well as a strong alignment of interests with investors.
The final close of the Fund represents a significant milestone in the evolution of Digital Realty’s funding and capital allocation strategy. The Strategic Private Capital platform augments PlatformDIGITAL’s capacity to support hyperscale customer requirements, diversifies and scales its capital base, and aims to enhance returns to Digital Realty shareholders. The Fund benefits from Digital Realty’s global position and scale, as the largest owner, operator, and developer of data centers across 55+ metros on six continents, along with a 20-plus year track record of execution, top-tier connectivity and a strong investment grade balance sheet.
Expansion of Strategic Private Capital Team
To further advance the growth of its Strategic Private Capital platform and support the continued expansion of its dedicated fund team, Digital Realty announced two senior additions:
Michael Yang has joined as Managing Director, Fund Management. Mr. Yang most recently served as Senior Managing Director at CBRE Investment Banking, where he led the firm’s private capital advisory practice. Previously, Mr. Yang held various investment management roles as both a General Partner and Limited Partner at Goldman Sachs Asset Management, NEPC, GID and AEW Capital Management.
Bradley Petersen has joined as Managing Director, Private Capital Fund Raising. Mr. Petersen most recently served as Head of Capital Raising at Jamestown LP and previously held capital raising, investor relations, and business development roles at Garrison Investment Group and Aetos Capital Real Estate.
Greg Wright, Digital Realty Chief Investment Officer
We are pleased to announce the final close of our inaugural U.S. hyperscale data center fund, alongside the addition of two highly experienced senior executives to our Strategic Private Capital team. We remain focused on sourcing and delivering hyperscale data center capacity to support our customers’ accelerating requirements, and private capital is playing an increasingly important role in how we prudently and efficiently scale PlatformDIGITAL. Strengthening our private capital capabilities enhances our customer focus, expands our ability to fund growth, and positions Digital Realty for durable long-term value creation.
Matt Mercier, Digital Realty Chief Financial Officer
Demand for hyperscale data center capacity remains exceptionally strong, driven by secular tailwinds in digital transformation, cloud, and AI. The U.S. remains the world’s cornerstone market for advanced technology companies, and we are proud to support their growth through our inaugural Fund. We are excited to partner with our new investors and welcome Michael and Brad to the team, as we enter the next phase of hyperscale infrastructure expansion.
