The REIT secures long-term leases and joint ventures to capitalize on the $1 trillion AI data center market growth.
Realty Income (O) is expanding its exposure to the AI data center boom through strategic joint ventures. The REIT holds an 80% stake in a build-to-suit venture with Digital Realty, targeting up to 48 megawatts of capacity with a $800 million build-out cost. A long-term net lease with a high-quality tenant secures the investment.
The company recently formed a larger joint venture with Cloud Capital, initially holding over $6 billion in assets. Realty Income will invest up to $1.4 billion for a 45% stake in a three-asset Northern Virginia portfolio, with options to expand into future developments and acquisitions.
The moves position Realty Income to grow its 5%-yielding monthly dividend, leveraging the $1 trillion AI data center market without the volatility of direct tech investments.