Digital Realty announced the final close of a $3.25 billion U.S. hyperscale data center fund, securing equity commitments from a broad mix of institutional investors including pensions, sovereign wealth funds, and asset managers. The fund targets ownership and development of hyperscale facilities across key Tier I U.S. metros such as Northern Virginia, Santa Clara, Dallas, Atlanta, Charlotte, and New York.
The company will retain a 20% ownership stake in the portfolio and serve as fund manager, overseeing development, leasing, and operations. The initiative expands Digital Realty’s Strategic Private Capital platform, designed to scale its PlatformDIGITAL architecture while diversifying capital sources to support hyperscale and AI-driven infrastructure demand. The fund structure aligns investor participation with Digital Realty’s long-term development pipeline and operational model.
Digital Realty also added two senior executives to accelerate its private capital strategy. Michael Yang joins as Managing Director of Fund Management, previously leading private capital advisory at CBRE Investment Banking, while Bradley Petersen joins as Managing Director of Private Capital Fund Raising, most recently Head of Capital Raising at Jamestown. The appointments support the company’s efforts to expand institutional participation in large-scale data center development.
- $3.25 billion in total equity commitments secured at final close
- Focus on Tier I U.S. hyperscale markets including Northern Virginia and Santa Clara
- Digital Realty retains 20% ownership and acts as fund manager
- Strategic Private Capital platform supports PlatformDIGITAL expansion
- Two senior hires strengthen fund management and capital raising capabilities
- Backed by institutional investors including pensions, sovereign wealth funds, and insurers
“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,” said Greg Wright, Chief Investment Officer at Digital Realty.
🌐 Analysis: The $3.25 billion fund underscores how large-scale data center operators are increasingly turning to private capital vehicles to finance hyperscale expansion tied to AI and cloud demand. This mirrors broader industry moves by competitors such as Equinix and Blackstone-backed platforms, which are also leveraging institutional capital to accelerate capacity buildouts while managing balance sheet exposure.
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