Realty Income Enters Hyperscale Data Center Market with $6 Billion Venture

The venture focuses on securing stabilized and development-stage assets in Northern Virginia, a region widely recognized as a primary hub for global data infrastructure. These properties are backed by 15- to 20-year triple-net leases with investment-grade tenants, a structure designed to provide long-term, stable cash flow that aligns with Realty Income’s broader dividend-focused investment strategy.

Sumit Roy, CEO of Realty Income, noted that the move signals the firm's capacity to pivot into digital infrastructure while maintaining its disciplined capital allocation approach. The portfolio management and development will be handled by CloudHQ, with Cloud Capital retaining a minority interest. Initial funding for the first phase is expected between the second and third quarters of 2026, with the programmatic nature of the agreement allowing for future expansion into additional markets across the United States and Europe.