Digital Realty Secures $3.25B for New Hyperscale Development Fund
Digital Realty has successfully closed a $3.25 billion private development fund to enhance its capital strategies for data center expansions. This funding will support over $10 billion in new hyperscale investments, highlighting a strategic shift towards private capital in the digital infrastructure sector.
Digital Realty has closed its inaugural U.S. hyperscale development fund, raising $3.25 billion from institutional investors, including public pensions and sovereign wealth funds. This fund aims to support more than $10 billion in new hyperscale investment and represents a shift towards private capital strategies to finance data center developments.
AI-curated by TheiaThe fund provides a steady income stream for investors through fully leased data centers, enabling Digital Realty to finance predevelopment costs without project-specific debt. The company has also established a $15 billion liquidity pool, termed "dry powder," to capitalize on land and power opportunities in anticipation of increasing demand from Big Tech. Furthermore, Digital Realty has appointed Michael Yang and Bradley Petersen to enhance its private capital capabilities, aiming for long-term value creation and efficient scaling of its operations.
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