Cloud Capital and Arcapita Form Joint Venture to Acquire and Expand Minneapolis Data Center

Cloud Capital and Arcapita Form Joint Venture to Acquire and Expand Minneapolis Data Center

January 14, 2026

The acquisition of a major data center in a key US market underscores the continued influx of institutional capital into digital infrastructure, driven by the insatiable demand for AI and cloud computing capacity. This trend highlights data centers as a resilient asset class attractive to a diverse range of global investors.

US-based investment firm Cloud Capital and Bahraini asset manager Arcapita have announced a joint venture partnership to acquire a 21-megawatt (MW) data center facility in Minneapolis, Minnesota. The transaction, finalized this week, was executed through Cloud Capital's newly launched Fund III. While the financial terms were not disclosed, the partners have outlined plans to expand the site's capacity by an additional 10MW, bringing its total potential IT load to 31MW.

The acquired facility, located at 1001 3rd Avenue South, is a multi-tenant property previously owned by Legacy Investing LLC. It is reportedly primarily leased on a long-term basis to a leading provider of sovereign AI and cloud inferencing solutions. The building, originally constructed in 1988 and renovated in 2004, has a storied history, having served major financial institutions like Ameriprise Financial and American Express. Recent regulatory filings indicate the new owners have sought permission to dedicate the entire mixed-use site exclusively to data center operations.

Martin Tan, Chief Investment Officer at Arcapita, emphasized the strategic nature of the move, stating, "Artificial intelligence and digital infrastructure are forming an increasingly important part of Arcapita’s long-term strategy, aligned with our focus on resilient, income-generating assets. Our partnership with Cloud Capital... represents a key milestone for Arcapita in this segment." He added that this acquisition is expected to be the first of multiple investments in the digital infrastructure space for the firm.

Shariar Mohajer, President and Chief Investment Officer at Cloud Capital, highlighted the asset's value proposition, saying, "With 21MW of stabilized capacity and an additional 10MW of expansion potential, we are delivering a highly attractive investment that provides a downside-protected return profile." Cloud Capital, established in 2020, now manages over $5.5 billion in data center assets across 26 properties, totaling more than 330MW of contracted IT load spanning over 4.2 million square feet, primarily concentrated in the United States. Arcapita, founded in 1997, is a global alternative investment firm with a total transaction history exceeding $32 billion.

The deal reflects a broader industry pattern where specialized digital infrastructure operators are partnering with deep-pocketed financial institutions to scale portfolios. It also signals the growing importance of secondary markets like Minneapolis, which offer attractive power and connectivity profiles for supporting next-generation AI workloads, drawing significant investment beyond traditional hyperscale hubs.

Source: datacenterdynamics