Cloud Capital and Realty Income have formed a new joint venture to invest in data centers, seeded with three facilities in Virginia.Announced this week, the companies and an unnamed global institutional investor are investing in a portfolio of stabilized hyperscale assets leased to investment-grade tenants under long-duration, triple-net leases.The Core Joint Venture Strategy has committed to acquire three data center assets in Northern Virginia and leased to investment-grade hyperscale tenants for 15-20 years on a triple net (NNN) basis. Full details of the facilities have not been shared.Realty Income expects to invest up to $1.4 billion, with initial investments of approximately $700 million expected to be funded between the second and third quarter of 2026.Realty Income will acquire an initial 45 percent interest in the first stabilized data center, and will acquire a similar stake in the other two, which are currently in development.Cloud Capital will hold a minority investment in the portfolio.CloudHQ, Cloud Capital’s sister company, will provide property management and development management services to the portfolio.Going forward, the venture will aim to invest in facilities across the US and Europe.Founded in 1969, Realty Income is a real estate capital provider, with a portfolio of more than 15,500 properties across the US and Europe. The firm has previously formed a joint venture with Digital Realty for data centers in Virginia.Established in 2020 as the investment management affiliate of data center operator CloudHQ, Cloud Capital describes itself as a specialized investment management firm focused on acquiring, managing, and operating high-quality data centers.This latest announcement states that it has more than $12bn worth of data center assets under management, with 30 assets owned and more than 330MW in contracted IT load across more than 4.2 million sq ft."Today's announcement affirms the strength of our business model and its ability to translate across sectors, including digital infrastructure," said Sumit Roy, president and CEO of Realty Income. "We are pleased to advance a scaled digital infrastructure platform while deepening our programmatic relationship with Cloud Capital, which is vertically integrated with CloudHQ, a best-in-class developer and operator. The combination of high-quality data center assets leased to investment-grade tenants, long-duration triple-net leases, and an attractive return profile reflects our disciplined approach to capital allocation and value creation.""Hyperscale customers need infrastructure delivered at unprecedented scale and pace," added Hossein Fateh, founder and CEO of Cloud Capital and CloudHQ. "Partnering with Realty Income and the Global Investor brings together the capital and the operating expertise to meet that demand and to extend our leadership in the sector."Moelis & Company LLC served as financial advisor, and Latham & Watkins LLP served as legal counsel to Realty Income. Goldman Sachs & Co. LLC served as financial advisor, and Jones Day served as legal counsel to Cloud Capital.