Bahraini Arcapita Signs JV Partnership with Cloud Capital

Arcapita Group Holdings, the global alternative investment firm headquartered in Bahrain, has announced a joint venture partnership with Cloud Capital to acquire a 21-megawatt data center located in Minneapolis, US, with plans to expand its capacity to 31 MW.

Cloud Capital is a leading US-based global data centre investment management firm with a diversified portfolio of 26 data center assets worth over US$5.5 billion in assets under management, with longstanding relationships with top-tier tenants in the sector.

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.

According to Arcapita, the data centre 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.

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," he stated.

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 stabilised 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," he added.