Digital Realty has raised $3.25bn (€2,83bn) for its inaugural US hyperscale data centre fund, securing commitments from a diverse group of global institutional investors, including public pensions and sovereign wealth funds.
The global data centre provider said it will retain a 20% ownership interest in the portfolio and serve as the fund manager, following commitments from a diverse group of backers including endowments, foundations, corporate pensions, insurers, asset managers and family offices.
The fund will mainly focus on the ownership and development of hyperscale data centres across major US Tier I metros, including Northern Virginia, Santa Clara, Dallas, Atlanta, Charlotte and New York, Digital Realty said.
The data centre firm has also appointed Michael Yang as managing director, fund management. Yang most recently served as senior managing director at CBRE’s investment banking arm, where he led the firm’s private capital advisory practice. Previously, Yang held various investment management roles as both a general partner and limited partner at Goldman Sachs Asset Management, NEPC, GID and AEW Capital Management.
Bradley Petersen has also joined as managing director, private capital fund raising. Petersen most recently served as head of capital raising at Jamestown and previously held capital raising, investor relations, and business development roles at Garrison Investment and Aetos Capital Real Estate.
Greg Wright, Digital Realty CIO, said: “We remain focused on sourcing and delivering hyperscale data centre capacity to support our customers’ accelerating requirements, and private capital is playing an increasingly important role in how we prudently and efficiently scale PlatformDIGITAL, the company’s global data center platform.
“Strengthening our private capital capabilities enhances our customer focus, expands our ability to fund growth, and positions Digital Realty for durable long-term value creation.”
Matt Mercier, Digital Realty CFO, said: “Demand for hyperscale data centre capacity remains exceptionally strong, driven by secular tailwinds in digital transformation, cloud, and AI. The US remains the world’s cornerstone market for advanced technology companies, and we are proud to support their growth through our inaugural fund.
“We are excited to partner with our new investors and welcome Michael and Brad to the team, as we enter the next phase of hyperscale infrastructure expansion.”
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