Digital Realty completed the final close of its first U.S. hyperscale data center fund with $3.25 billion in equity commitments from institutional investors including public pensions, sovereign wealth funds, endowments, insurance companies and family offices. The Fund focuses on ownership and development of hyperscale facilities in Northern Virginia, Santa Clara, Dallas, Atlanta, Charlotte and New York, establishing a diversified portfolio in key Tier I markets.

Digital Realty will retain a 20% ownership interest in the Fund’s assets and serve as the Fund manager, overseeing leasing, development, asset management and financing activities. This structure aligns incentives with investors and leverages Digital Realty’s global operating platform across more than 300 facilities in 55+ metros to ensure consistent execution and customer experience.

To support the Fund’s growth and PlatformDIGITAL scalability, Digital Realty appointed Michael Yang as Managing Director of Fund Management and Bradley Petersen as Managing Director of Private Capital Fund Raising. These hires bring extensive private capital advisory and capital raising experience aimed at enhancing the company’s ability to source and deploy private equity for hyperscale data center development.

The hyperscale fund augments Digital Realty’s capital allocation strategy by diversifying funding sources and improving growth funding efficiency, which is expected to enhance long-term value creation and returns for shareholders. The expanded private capital platform positions the company to meet accelerating hyperscale customer requirements driven by digital transformation, cloud growth and AI workloads.