Digital Realty Secures $3.25 Billion for Inaugural US Hyperscale Data Center Fund

Digital Realty Closes $3.25 Billion Hyperscale Fund Targeting Key US Markets

March 31, 2026

In a significant move to capitalize on the explosive demand for cloud and AI infrastructure, Digital Realty has successfully closed its first dedicated US hyperscale data center fund, securing substantial capital from major institutional investors. The closure of this fund underscores the critical role of private capital in financing the massive scale required to support the digital economy's next growth phase.

The data center real estate investment trust announced the final close of the fund this week, having raised a total of $3.25 billion in equity commitments. The capital was secured from a diverse group of global institutional investors, including public pensions, sovereign wealth funds, endowments, foundations, and insurance companies. The fund's strategy is centered on acquiring and developing hyperscale data center facilities in major Tier I metropolitan markets across the United States. Primary targets include Northern Virginia, Santa Clara, Dallas, Atlanta, Charlotte, and New York.

Digital Realty will retain a 20 percent ownership stake in the fund's portfolio and will serve as the manager, responsible for all operations, leasing, asset management, and development activities. "We are pleased to announce the final close of our inaugural US hyperscale data center fund," said Greg Wright, Chief Investment Officer of Digital Realty. He emphasized that the initiative aligns with the company's focus on meeting accelerating customer requirements for capacity. "Private capital is playing an increasingly important role in how we prudently and efficiently scale PlatformDIGITAL," Wright added, noting that it enhances customer focus, funds growth, and supports long-term value creation.

The fundraising effort was facilitated by placement agents Eastdil Secured and PJT Park Hill Group, with Kirkland & Ellis acting as legal counsel. This fund represents a continuation of Digital Realty's strategy to partner with investment capital, following existing joint ventures with firms like Blackstone, TPG, and Realty Income Corp. The company has previously demonstrated this model through Digital Core REIT, a Singapore-listed entity seeded with a portfolio of 10 stabilized data centers totaling over 1.2 million square feet and 49 megawatts of capacity.

The successful closure of this $3.25 billion vehicle signals strong investor confidence in the sustained growth of data center demand, particularly for hyperscale facilities powering cloud services and artificial intelligence. It provides Digital Realty with a potent new mechanism to rapidly expand its footprint in the nation's most competitive data center corridors, positioning it to capture a significant share of future enterprise and hyperscale leasing activity.

Source: datacenterdynamics