Realty Income to Invest $1.4B for 45% Stake in $6B Data Center JV

Realty Income has partnered with Cloud Capital and a global institutional investor to form a programmatic joint venture focused on hyperscale data centers. The arrangement creates a platform for coordinated investments in U.S. and European digital infrastructure.

Realty Income expects to fund up to $1.4 billion over time for a 45% equity stake in an initial three-asset Northern Virginia portfolio valued at over $6 billion. The JV will acquire one fully stabilized facility in the third quarter of 2026 and two additional assets currently under development.

All portfolio assets are 100% leased or pre-leased to investment-grade hyperscale tenants under long-duration, triple-net leases with embedded annual rent escalators over 15 to 20 years. This structure provides predictable cash flows and aligns with Realty Income’s yield targets.

The programmatic nature of the venture enables Realty Income to pursue additional qualifying data center developments and acquisitions across the United States and Europe. This expansion supports the company’s strategic push into digital infrastructure and diversified income sources.