Planned 10 MW expansion to enhance operating income and investment value

Arcapita Group Holdings Limited (“Arcapita”), the global alternative investment firm, announces a joint venture partnership with Cloud Capital to acquire a 21-megawatt data center located in Minneapolis, Minnesota, with plans to expand its capacity to 31 MW. Cloud Capital is a leading global data center investment management firm with a diversified portfolio of 26 high-quality data center assets totaling over USD 5.5 billion in assets under management, with longstanding relationships with top-tier tenants in the sector.

The data center is primarily leased on a long-term basis to a leading provider of sovereign AI and cloud inferencing solutions and 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.

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 1000 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.

Martin Tan, Chief Investment Officer at Arcapita, said: “Artificial intelligence and digital infrastructure are forming an increasingly important part of Arcapita’s long-term strategy, aligned with our focus on resilient, income-generating assets. Our partnership with Cloud Capital, a specialized data center investment management firm with top-tier tenant relationships, represents a key milestone for Arcapita in this segment and provides us with a strong foundation to scale across key markets.”

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. With 21MW of stabilized capacity and an additional 10MW of expansion potential, we are delivering a highly attractive investment that provides a downside-protected return profile.  Further, we are thrilled to partner with Arcapita and broaden our universe of strategic relationships.”

Brian Hebb, Managing Director and Head of US Real Estate 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 AI and cloud computing firm, with substantial growth potential through expansion. Arcapita will continue to strengthen its presence in the U.S. market through investments in essential real estate and infrastructure assets that combine stable cashflows with disciplined, value-enhancing growth.”

Artificial intelligence continues to form a long-term structural investment theme for Arcapita, building on its private equity exposure to the sector. The firm’s expansion into AI-enabled digital infrastructure offers investors high-quality, defensive and income-generating real estate assets with a compelling growth potential. This acquisition is expected to be the first of multiple investments in this segment planned by Arcapita over the near to medium term.

Contacts
Arcapita
Tariq Hayat
+973 17 218 858
+973 39 461103
thayat@arcapita.com 

Brunswick Group
Mira Kest
+971 50 5547349
arcapita@brunswickgroup.com

About Arcapita

Arcapita is a global alternative investments firm focused on private equity and real estate, with a track record of over 30 years and a total transaction value of more than $32 billion. Arcapita has offices in the US, UK, Saudi Arabia, UAE, Singapore, as well as affiliated offices in Bahrain.

For more information, please visit: www.arcapita.com

About Cloud Capital

Cloud Capital is a leading global specialized investment management firm focused on acquiring, developing and operating high-quality data centers. Since 2020, Cloud Capital has acquired a portfolio of data center assets worldwide valued at over $5 billion, employing a rigorous and disciplined underwriting process for both proprietary and off-market data center transactions and active hands-on asset management. Cloud Capital has offices in Washington, D.C., San Francisco, and London.

For more information, please visit: www.cloudcapital.com
Contact: info@cloudcapital.com