O · Earnings call · 2026Q2T · Full report

Data Center Demand Buildout

REALTY INCOME CORP · 2026-08-05 · Importance 58 · Surprise 42

Realty Income formed a programmatic hyperscale data center joint venture with Cloud Capital covering three Northern Virginia assets representing under 400 megawatts of capacity. Management said demand for data center capacity exceeds available supply in many attractive markets, driven by AI adoption, cloud computing, and broader digitization. The company is evaluating opportunities across leading U.S. and European markets, including the FLAP cities, and is focused on long-duration leases, investment-grade hyperscalers and enterprise users, and mitigating tenant concentration and obsolescence risks.

Key facts

• Realty Income indicated it will pursue 15- to 20-year leases, preferably 20-year leases, for data center investments
• Realty Income believes demand for data center capacity continues to exceed available supply in many attractive markets and views the industry as early-stage multiyear digital infrastructure build-out driven by AI, cloud, and digitization