- Digital Realty closed its first US hyperscale data center fund at $3.25B in equity commitments.
- The fund targets major data center markets including Northern Virginia, Santa Clara, Dallas, Atlanta, Charlotte, and New York City.
- Digital Realty retains a 20% stake and manages the fund’s portfolio and operations.
- Data center investments accounted for 12% of all US CRE investments in 2025, nearly double the prior year.
Major Data Center Fund Closes
Commercial Property Executive reports that Digital Realty has closed its first US hyperscale data center fund. The fund secured $3.25B in equity commitments from domestic and global investors.
The company will use the fund to develop and own data centers in major US markets. Target cities include Northern Virginia, Santa Clara, Dallas, Atlanta, Charlotte, and New York City.
Investor Momentum Builds
The fund attracted backing from pensions, sovereign wealth funds, endowments, insurers, and family offices. This demand reflects strong institutional appetite for data centers. Even as some operators recently reported weaker quarterly revenue and earnings performance, capital continues flowing into the sector. Digital Realty retains a 20% stake and manages assets, leasing, development, and financing.
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Leadership Additions
To support its growth, Digital Realty named Michael Yang as managing director of fund management and Bradley Petersen as managing director, private capital fund raising. Yang joins from CBRE Investment Banking, while Petersen was previously with Jamestown.
Data Centers See Record Investment
Interest in data centers is rising rapidly. Data centers comprised 12% of all US commercial real estate investment volume in 2025, almost double the prior year’s 7%. Overall, the sector is forecast to see $3T in market growth and add $1.2T in real estate value over five years, driven by shifts to cloud and AI.
What’s Next
With continued demand for digital infrastructure, data centers remain a priority for institutional investors and operators like Digital Realty. The company currently owns about 300 data center assets globally and continues to expand its platform in response to market needs.
