O · Earnings call · 2026Q2T · Full report
Data Center Joint Venture
REALTY INCOME CORP · 2026-08-05 · Importance 65 · Surprise 60 · In source text
Realty Income announced a $6 billion programmatic hyperscale data-center joint venture with Cloud Capital and expects to invest up to $1.4 billion for a 45% equity interest. The initial venture includes three Northern Virginia assets representing under 400 megawatts of capacity; the first stabilized asset closed after quarter end, and two development assets are expected to be acquired upon stabilization. The company currently has five data-center assets with different tenants and plans to emphasize investment-grade hyperscalers and enterprise users to limit tenant concentration. Management expects to consider additional U.S. and European opportunities, including development-phase investments, when long-term leases, escalators, locations, and residual-risk protections meet return requirements.
Key facts
- Realty Income expects to invest up to $1.4 billion over time for its 45% equity interest in a $6 billion programmatic hyperscale data center joint venture with Cloud Capital
- The data center joint venture includes three Northern Virginia data center assets representing under 400 megawatts of capacity
- Realty Income closed on the first stabilized data center asset last week and expects to acquire its share of two development assets upon stabilization
- Realty Income currently has five data center assets with different tenants
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | probable | — | Realty Income expects to invest up to $1.4 billion over time for its 45% equity interest in a $6 billion programmatic hyperscale data… |
| assets | positive | realized | — | Realty Income closed on the first stabilized data center asset last week and expects to acquire its share of two development assets upon… |
| assets | positive | probable | — | Realty Income closed on the first stabilized data center asset last week and expects to acquire its share of two development assets upon… |