Harrison Street Closes $600M Debut Digital Infrastructure Fund
Harrison Street successfully raised approximately $600 million in capital commitments across its HS Digital Fund and associated vehicles. Concluding with a final close in December, this marks the firm’s first dedicated pool of capital for its digital assets platform.
The new fund leverages Harrison Street’s strong track record in the digital infrastructure sector, where it has committed over $5.6 billion since 2018. The firm’s digital portfolio includes more than two dozen assets, encompassing 6.5 million square feet of data centers with over 2.1 gigawatts of capacity, as well as powered shells, carrier hotels, colocation sites, and dark fiber assets.
Harrison Street has made investments in the digital infrastructure sector through a variety of vehicles, including its Real Estate Partners IX fund, which closed at more than $7 billion in October 2024, and Real Estate Partners VIII, which raised $2.5 billion in October 2021.
“For two decades, we have identified and invested in needs-based assets that address key demands of the shifting global market, and the growth of our digital asset platform builds on our legacy of being a first mover and industry leader across alternative sectors,” said Christopher Merrill, co-founder, chairman and CEO of Harrison Street.
The debut of Harrison Street’s new fund coincides with rising demand in the data center sector. According to the firm’s 2025 US Outlook Report, the industry has more than doubled in size since 2021, from 15,000 megawatts to 32,000 megawatts, driven by advances in artificial intelligence and cloud storage. However, energy restrictions are limiting supply development, pushing data center rentals up by more than 15% year on year.
The news comes amid significant activity in the digital infrastructure industry. Novacap recently closed its inaugural digital infrastructure fund at more than $1 billion, while Apollo Global Management plans to add $6 billion in middle-market infrastructure assets, including digital infrastructure, through the acquisition of Argo Infrastructure Partners.
