Bahrain’s Arcapita forms JV and acquires a 21MW data centre in the US

Arcapita Group Holdings, Bahrain’s alternative investment firm, has formed a joint venture partnership with the US-based Cloud Capital to acquire a 21-megawatt data centre located in Minneapolis, Minnesota.

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.

Arcapita did not disclose the financial details of the joint venture or the acquisition.

Strategic US data centre investment

The JV company plans to expand its capacity to 31MW. The planned expansion is expected to significantly increase operating income and enhance the overall value of the investment.

Martin Tan, Chief Investment Officer at Arcapita, commented: “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 specialised data centre 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.”

Cloud Capital is a leading global data centre investment management firm with a diversified portfolio of 26 high-quality data centre assets totalling over $5.5 billion in assets under management.

Shariar Mohajer, President and Chief Investment Officer at Cloud Capital, said: “Our investment in this Minneapolis data centre 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.”

Minneapolis represents a growing data centre hub underpinned by good power infrastructure, low natural disaster risk, and a diversified economic base spanning several of the world’s biggest companies. The region continues to experience record-low data centre vacancy rates amid accelerating AI adoption and heightened enterprise cloud demand.

Brian Hebb, Managing Director and Head of US Real Estate at Arcapita, said: “Data centres are a cornerstone of the digital economy and a key focus area within Arcapita’s US 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 US market through investments in essential real estate and infrastructure assets that combine stable cashflows with disciplined, value-enhancing growth.”

For Arcapita, artificial intelligence continues to form a long-term structural investment theme, building on its private equity exposure to the sector.