en.Wedoany.com Report on Mar 31st, Digital Realty announced the final closing of its U.S. hyperscale data center fund, raising a total of $3.25 billion. The fund attracted broad participation from institutional investors including pension funds, sovereign wealth funds, and asset management companies. The fund aims to invest in key Tier 1 metropolitan areas in the U.S., such as Northern Virginia, Santa Clara, Dallas, Atlanta, Charlotte, and New York, to develop and own hyperscale data center facilities. The successful closing of this $3.25 billion fund marks a significant step for Digital Realty in its strategy to utilize private capital to support hyperscale data center expansion.
Under the fund's structure, Digital Realty will retain a 20% ownership stake in the fund's portfolio and will serve as the fund manager, overseeing development, leasing, and operations. This initiative expands the company's strategic private capital platform, aiming to support the expansion of the PlatformDIGITAL framework while diversifying funding sources to meet hyperscale and artificial intelligence-driven infrastructure demands. By retaining partial ownership and leading operations, Digital Realty maintains control over asset development and operational quality while introducing external capital. The fund's structure is designed to align investor participation with Digital Realty's long-term development pipeline and operational model.
To accelerate its private capital strategy, Digital Realty has hired two new senior executives. Michael Yang joins as Managing Director of Fund Management, previously leading private capital advisory at CBRE Investment Banking; Bradley Petersen joins as Managing Director of Private Capital Fundraising, most recently serving as Head of Fundraising at Jamestown. These appointments are intended to enhance the company's ability to engage with institutions in the data center development sector. The addition of these two seasoned executives demonstrates Digital Realty's systematic effort to strengthen its expertise in the private capital space to meet the growing demand for collaboration with institutional investors.
Greg Wright, Chief Investment Officer of Digital Realty, stated: "We remain focused on sourcing and delivering hyperscale data center capacity to meet growing customer demand. Private capital is playing an increasingly critical role in scaling PlatformDIGITAL prudently and efficiently." With the continued rise in cloud computing and AI workloads, hyperscale data centers have become a core asset class in digital infrastructure. The capital intensity required to develop such facilities is prompting operators to seek diversified financing channels. By establishing a dedicated fund, Digital Realty combines the long-term, stable nature of institutional capital with its own professional expertise in data center development and operations, creating a sustainable expansion model.
This $3.25 billion fund reflects a trend in the data center industry where operators are turning to private capital vehicles to support hyperscale expansion related to AI and cloud services. Similar moves have been seen by platforms like Equinix and those backed by Blackstone, aiming to leverage institutional capital to accelerate capacity build-out and manage risk. As demand for AI infrastructure continues to grow, the financing structure of the data center industry is undergoing profound changes. The model of deep integration between private capital and specialized operators is becoming mainstream. Digital Realty's successful final closing of this hyperscale data center fund not only provides ample resources for its expansion in core markets but also further solidifies its leading position in the global data center private capital management field.
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