Digital Realty Announces Final Close of $3.25 billion U.S. Hyperscale Data Center Fund
AUSTIN, Texas, March 30, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE:DLR), the world's largest cloud- and carrier-neutral data center platform, today announced the final close of its inaugural U.S. hyperscale data center fund (the "Fund"), securing $3.25 billion of total equity commitments from a diverse group of global institutional investors, including public pensions, sovereign wealth funds, endowments and foundations, corporate pensions, insurance and asset managers, and family offices.
The Fund is primarily focused on the ownership and development of hyperscale data centers across major U.S. Tier I metros, including Northern Virginia, Santa Clara, Dallas, Atlanta, Charlotte and New York. Digital Realty will retain a 20% ownership interest in the Fund's portfolio and serves as the manager of the Fund, overseeing operations, leasing, asset management, development, and financing to help ensure a seamless customer experience across all assets, as well as a strong alignment of interests with investors.
The final close of the Fund represents a significant milestone in the evolution of Digital Realty's funding and capital allocation strategy. The Strategic Private Capital platform augments PlatformDIGITAL's capacity to support hyperscale customer requirements, diversifies and scales its capital base, and aims to enhance returns to Digital Realty shareholders. The Fund benefits from Digital Realty's global position and scale, as the largest owner, operator, and developer of data centers across 55+ metros on six continents, along with a 20-plus year track record of execution, top-tier connectivity and a strong investment grade balance sheet.
Expansion of Strategic Private Capital Team
To further advance the growth of its Strategic Private Capital platform and support the continued expansion of its dedicated fund team, Digital Realty announced two senior additions:
- Michael Yang has joined as Managing Director, Fund Management. Mr. Yang most recently served as Senior Managing Director at CBRE Investment Banking, where he led the firm's private capital advisory practice. Previously, Mr. 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 joined as Managing Director, Private Capital Fund Raising. Mr. Petersen most recently served as Head of Capital Raising at Jamestown LP and previously held capital raising, investor relations, and business development roles at Garrison Investment Group and Aetos Capital Real Estate.
Executive Commentary
"We are pleased to announce the final close of our inaugural U.S. hyperscale data center fund, alongside the addition of two highly experienced senior executives to our Strategic Private Capital team," said Greg Wright, Digital Realty Chief Investment Officer. "We remain focused on sourcing and delivering hyperscale data center capacity to support our customers' accelerating requirements, and private capital is playing an increasingly important role in how we prudently and efficiently scale PlatformDIGITAL. 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."
"Demand for hyperscale data center capacity remains exceptionally strong, driven by secular tailwinds in digital transformation, cloud, and AI," said Matt Mercier, Digital Realty Chief Financial Officer. "The U.S. 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."
Advisory
Eastdil Secured and PJT Park Hill Group served as placement agents for the Fund and Kirkland & Ellis served as legal counsel for the raise.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives customers access to the connected data communities that matter to them through a global footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more, visit digitalrealty.com or follow us on LinkedIn and X.
For Additional Information
Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
+1 214 231 1350
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Media Contact
Helen Bleasdale
Digital Realty
+1 737 267 6822
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Safe Harbor Statement
This press release contains forward-looking statements based on current expectations, forecasts, and assumptions that involve risks and uncertainties which may cause actual results to differ materially from those described. These include statements related to the Fund, customer demand, expected benefits, use of proceeds, and the company's strategy. For a description of these risks and uncertainties, please refer to the company's filings with the U.S. Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statements.
