Cloud Capital, Arcapita Acquire and Expand Minneapolis Data Center
Cloud Capital, together with joint venture partner Arcapita Group Holdings Limited, has acquired a 21-megawatt data center in Minneapolis, Minnesota, with plans to expand the facility’s capacity to 31 MW.
The asset is currently largely leased on a long-term basis to a leading provider of sovereign AI and cloud inferencing solutions, providing immediate cash flow and downside protection. Cloud Capital said the planned 10-MW expansion is expected to materially lift operating income and enhance the long-term value of the investment as demand for AI-driven compute continues to surge.
“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,” said Kristin Leung, managing director and head of North America investments at Cloud Capital.
The acquisition aligns with Cloud Capital’s broader investment strategy for Fund III, its newly launched closed-end vehicle focused on value-add acquisitions and development opportunities across the global data center landscape. The firm currently oversees more than $5.5 billion in assets under management across 26 data center assets worldwide, spanning major U.S. and international markets.
For Arcapita, the transaction underscores a growing emphasis on digital infrastructure within its U.S. real estate portfolio. “Data centers are a cornerstone of the digital economy and a key focus area for Arcapita,” said Martin Tan, chief investment officer at Arcapita.
“This investment provides exposure to a mission-critical facility leased to a leading global AI and cloud computing firm, with significant upside through planned capacity expansion.”
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