About This Fund
Cloud Capital Fund III is a value-add, closed-end data center investment vehicle managed by Cloud Capital, a specialized investment management firm founded in 2020 and headquartered in Washington, D.C. Launched in January 2026 as the successor to the oversubscribed Cloud Capital Fund II (final close September 2025), Fund III marks a strategic evolution toward value-add return targets, employing active asset enhancement through development, capacity expansion, densification, and operational improvements to generate superior risk-adjusted returns compared to the core and core-plus data center strategies. Cloud Capital manages over USD 5.5 billion in data center assets globally across a portfolio of 26 high-quality digital infrastructure assets as of January 2026, spanning primary U.S. markets and select international locations.
Cloud Capital Fund III targets high-quality data center acquisition and development opportunities across the United States, leveraging the firm's deep expertise in hyperscale, enterprise, and AI-driven infrastructure. The value-add mandate focuses on assets with near-term capacity expansion potential, lease-up opportunities, or operational enhancement prospects — including sites where Cloud Capital's tenant relationships can accelerate occupancy or where power and infrastructure upgrades can increase leasable capacity. The fund's inaugural investment, completed in January 2026, was the co-acquisition with Arcapita of a 21-megawatt data center in Minneapolis, Minnesota, with a confirmed expansion plan to 31 megawatts. The property is primarily leased on a long-term basis to a sovereign AI and cloud inferencing provider.
Cloud Capital's investment track record spans three flagship closed-end funds: an inaugural platform vehicle followed by Fund II (oversubscribed, final close September 2025) and Fund III (value-add, launched January 2026). The firm's investor base spans U.S. and international institutional investors including pension funds, asset managers, and family offices, attracted by Cloud Capital's specialist data center expertise, established tenant relationships with hyperscale and AI infrastructure operators, and demonstrated ability to source off-market opportunities in supply-constrained U.S. data center markets. The Minneapolis market where Fund III made its first investment offers robust power infrastructure, minimal natural disaster risk, and record-low vacancy rates driven by accelerating enterprise AI and cloud workload demand.