Cloud Capital, a Washington, D.C.-based data center investment management firm, has announced the formation of a new programmatic joint venture strategy seeded with more than USD 6 billion in assets, bringing together Realty Income and an unnamed global institutional investor in a push to capture stabilized hyperscale data center exposure across the United States and eventually Europe.

Structure and Seed Portfolio

The new vehicle, formally named Cloud Capital's Core Joint Venture Strategy, launched on July 1, 2026, and is anchored by three initial investments valued in aggregate at over USD 6 billion.

The strategy concentrates on stabilized hyperscale data center assets leased to investment-grade tenants under long-duration, triple-net lease structures.

Cloud Capital has stated its intention to expand the strategy into European markets following its initial focus on tier one geographies in the United States, which the firm characterizes as high barriers to entry markets.

The programmatic nature of the joint venture signals an ongoing deployment relationship rather than a one-time transaction, with Cloud Capital serving as the platform operator drawing on what it describes as a vertically integrated investment and operating model.

The firm said the Core Joint Venture Strategy builds on its existing suite of investment vehicles, which includes a Core-Plus Open-End Strategy, an Opportunistic Closed-End Strategy, and a Value-Add Closed-End Strategy that Cloud Capital described as newly launched.

Cloud Capital's Platform and Track Record

Cloud Capital was founded in 2020 and has since assembled a portfolio of 30 data center assets worldwide with a stated value of over USD 12 billion.

The firm maintains offices in Washington, D.C., San Francisco, and London and describes its approach as combining proprietary and off-market transaction sourcing with active hands-on asset management.

Hossein Fateh, Cloud Capital's Founder and Chief Executive Officer, emphasized the importance of long-term tenant relationships and asset quality in framing the rationale for the new strategy.

"Drawing on more than 30 years of investing in and leasing some of the world's largest data centers through multiple cycles, I have seen firsthand the importance of acquiring and developing high-quality assets and long-term tenant relationships," Fateh said.

He added that the firm believes this positioning allows its partners to benefit from exposure to data centers underpinned by what he called accelerating demand for cloud and artificial intelligence applications.

Shariar Mohajer, Cloud Capital's President and Chief Investment Officer, pointed to the maturation of the digital infrastructure market as a driver of increasing importance for specialized sector knowledge and proprietary deal sourcing.

"Our dedicated platform, longstanding industry relationships and vertically integrated capabilities enable us to access differentiated investment opportunities and build portfolios with resilient cash flow, attractive long-term fundamentals, and long-term value creation for our partners," Mohajer said.

Cloud Capital's vertically integrated structure includes its relationship with CloudHQ, which Realty Income identified in its own commentary as a best-in-class developer and operator of data centers.

Realty Income's Strategic Rationale

For Realty Income, the joint venture represents a continuation and deepening of its programmatic relationship with Cloud Capital and an extension of its real estate capital provider model into digital infrastructure.

Realty Income, which trades on the New York Stock Exchange under the ticker symbol O and is a member of the S&P 500, has a portfolio of over 15,500 properties across all 50 U.S. states, the United Kingdom, and eight other European countries, as of today.

Sumit Roy, President and Chief Executive Officer of Realty Income, described the announcement as an affirmation of the company's business model and its capacity to extend across sectors, including digital infrastructure. "We are pleased to advance a scaled digital infrastructure platform while deepening our programmatic relationship with Cloud Capital, which is vertically integrated with CloudHQ, a best-in-class developer and operator," Roy said.

He characterized the combination of high-quality data center assets, long-duration triple-net leases leased to investment-grade tenants, and what he described as an attractive return profile as consistent with Realty Income's approach to capital allocation and value creation.

Realty Income was founded in 1969 and is widely known for its monthly dividend program. The company has declared 672 consecutive monthly dividends and has increased its dividend for more than 31 consecutive years, qualifying it for inclusion in the S&P 500 Dividend Aristocrats index.

Advisors to the Transaction

Goldman Sachs and Co.

LLC acted as financial advisor to Cloud Capital on the transaction, with Jones Day serving as legal counsel.

On the Realty Income side, Moelis and Company LLC provided financial advisory services, while Latham and Watkins LLP served as legal counsel.

The identity of the third partner, referred to throughout Cloud Capital's announcement as a Global Institutional Investor, was not disclosed in the materials released by either party at the time of the announcement.