O · Earnings call · 2026Q2T · Full report

Data Center Strategic Expansion

REALTY INCOME CORP · 2026-08-05 · Importance 59 · Surprise 60

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 venture includes three Northern Virginia assets representing under 400 megawatts, with one stabilized asset acquired and two development assets expected after stabilization. Management believes AI adoption, cloud computing, and digitization are driving a multiyear U.S. and European digital-infrastructure build-out, with demand exceeding supply in attractive markets. The company is open to both stabilized and development-phase investments in U.S. and European markets, including the FLAP cities, while emphasizing long-duration leases, investment-grade tenants, tenant diversification, and residual-value protections.

Key facts

• Realty Income is not targeting a fixed percentage exposure to data centers as a percent of ABR or gross investment