Overview
- Cloud Capital announced a Core Joint Venture with Realty Income and an unnamed global institutional investor that is seeded with three initial investments valued at more than $6 billion.
- The JV will target stabilized hyperscale data centers leased to investment‑grade tenants on long‑duration, triple‑net leases, a structure that leaves tenants responsible for most property costs and gives owners steady, landlord‑lite income.
- Realty Income has committed capital to the venture and said the deal deepens its programmatic relationship with Cloud Capital; reporting indicates Realty Income will take about a 45% stake in the initial three-asset investment and fund a multihundred‑million dollar tranche to start.
- Cloud Capital will leverage its vertically integrated platform, proprietary pipeline, tenant relationships, and CloudHQ operating affiliate and points to a track record of roughly 30 data centers valued at over $12 billion since 2020 as the basis for the strategy.
- The move responds to strong institutional demand for digital‑infrastructure tied to cloud and AI workloads and could lead to scaled U.S. core exposure and future European expansion that offers investors lower‑volatility cash flows and Realty Income further diversification of its portfolio.