Digital Realty Wraps Up $3.3B Data Center Fund

March 31, 2026

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The company will focus on top-tier markets across the U.S.

Digital Realty's corporate headquarters is located at 2323 Bryan St., Suite 1800 in Dallas — Digital Realty’s corporate headquarters is located at 2323 Bryan St., Suite 1800 in Dallas. *Image courtesy of Yardi Matrix*

Data center specialist Digital Realty has closed its inaugural U.S. hyperscale data center fund, securing $3.25 billion of total equity commitments. The fund will focus on owning and developing assets in major data center markets, including Northern Virginia, Santa Clara, Calif., Dallas, Atlanta, Charlotte, N.C., and New York City.

The fund is structured such that Digital Realty retains a 20 percent ownership stake in the fund’s portfolio and serves as the manager of the fund. In that capacity, the company will oversee operations, leasing, asset management, development and financing for the assets.

Investors in the fund represented a wide range of domestic and overseas entities. Public pensions, sovereign wealth funds, endowments and foundations, pension funds, insurance companies and family offices all wanted a piece of the action.

In conjunction with the closing of the fund, Digital Realty added two senior executives. Michael Yang has joined as managing director, fund management. Yang most recently served as senior managing director at CBRE Investment Banking, where he led the firm’s private capital advisory practice.

Digital Realty also tapped Bradley Petersen to be managing director, private capital fund raising. Petersen most recently served as head of capital raising at Jamestown.

Eastdil Secured and PJT Park Hill Group served as placement agents for the fund. Kirkland & Ellis served as legal counsel for the raise.

Data centers are investment darlings

Investors have taken to data centers in a big way. Investment volume was 12 percent of total U.S. commercial real estate investments in 2025, according to DLA Piper, a near doubling from 7 percent a year earlier. As recently as 2022, only 1 percent of all investment sales were data centers.

Overall market growth in data centers and related infrastructure is projected to approach $3 trillion over the next five years, according to Reuters. The new capacity over that period, about 100 GWs, will create $1.2 trillion in real estate asset values.

The transition to cloud and AI will provide “long-term incremental demand” for data center companies, Digital Realty CEO Andrew Power said during the 2025 Nareit REITWeek investor conference. Digital owns an international portfolio of about 300 data center assets, and more are under construction.