Cloud Capital, a leading global data center investment management firm, together with Arcapita Group Holdings Limited (“Arcapita”), the global alternative investment firm and joint venture partner, announced today the acquisition of a 21-megawatt (MW) data center located in Minneapolis, Minnesota, with plans to expand its capacity to 31 MW. The property’s current capacity is primarily leased on a long-term basis to a leading provider of sovereign AI and cloud inferencing solutions.
The Minneapolis data center is strategically positioned to benefit from surging demand for high-density digital infrastructure driven by artificial intelligence, cloud computing, and enterprise digital transformation. The planned 10 MW expansion is expected to significantly increase operating income and enhance the overall value of the investment.
Shariar Mohajer, President and Chief Investment Officer at Cloud Capital, said: “Our investment in this Minneapolis data center reflects our commitment to identifying strategic assets that offer both immediate income and significant upside. Kristin Leung, Managing Director and Head of North America Investments, added: “With 21MW of stabilized capacity and an additional 10MW of expansion potential, we are delivering a highly attractive, downside-protected return profile for our investors. Further, we are thrilled to partner with Arcapita and broaden our universe of investor relationships.”
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Cloud Capital manages over $5.5 billion in assets under management across a diversified portfolio of 26 high quality data center assets worldwide. This transaction is representative of Cloud Capital’s investment strategy for Fund III; its newly launched closed-end fund focused on value-add acquisition and development opportunities. The strategic investment focus is based on Cloud Capital’s specialist knowledge, longstanding tenant relationships, and value creation through development, expansion, densification, and operational enhancements.
Martin Tan, Chief Investment Officer at Arcapita, said: “Data centers are a cornerstone of the digital economy and a key focus area within Arcapita’s U.S. real estate strategy. This investment provides exposure to a mission-critical asset leased to a leading global AI and cloud computing firm, with substantial embedded growth potential through the planned capacity expansion. It has been a pleasure working with Cloud Capital given its longstanding sector expertise, robust diligence process, and disciplined operational management capabilities.”
Minneapolis represents a growing data center hub underpinned by robust power infrastructure, low natural disaster risk, and a diversified economic base spanning Fortune 500 and 1,000 companies, healthcare leaders, and technology innovators. The region continues to experience record-low data center vacancy rates amid accelerating AI adoption and heightened enterprise cloud demand.
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