Harrison Street, a prominent investment firm, has successfully raised $600 million for its inaugural fund dedicated to data centers. This marks a significant milestone for the company, which has been investing in real assets since its founding in 2005.
Harrison Street’s First Dedicated Data Center Fund
The newly established HS Digital Fund and its associated vehicles represent Harrison Street’s first concentrated pool of investment capital focused on digital assets, including data centers. With this fund, the firm aims to further expand its digital infrastructure portfolio, which has already seen investments in over two dozen data center projects.
Christopher Merrill, co-founder, chairman, and CEO of Harrison Street, expressed excitement about the fund’s closure, stating, “We are proud to receive support from our investors for a dedicated vehicle at a pivotal time in the growth of the digital assets sector.” He emphasized the firm’s long history of identifying and investing in emerging market needs, positioning them as a leader in the sector.
Focus on Digital Assets Across North America
Harrison Street’s new fund will continue the firm’s focus on data center projects, driven by the increasing demand for digital infrastructure across North America. Over the past few years, the firm has committed more than $5.6 billion to various digital asset types, including powered shells, carrier hotels, colocation sites, and dark fiber assets.
“With our strong partnerships with top-tier operators and developers, our deep understanding of the evolving primary and secondary markets, and the confidence investors place in our platform, we feel we are well positioned to capitalize on the investment opportunities ahead,” said Michael Hochanadel, managing director and head of digital at Harrison Street.
A Strong Track Record in Data Center Investments
Since 2018, Harrison Street has invested significantly in data center infrastructure, acquiring more than 6.5 million square feet (603,870 sqm) of data center space. The firm has also made notable investments in over 2.1GW of data center capacity. These investments underscore the firm’s growing presence in the digital asset sector, which includes collaborations with key industry players like Fifteenfortyseven Critical Systems Realty (1547 CSR), PowerHouse, and Lincoln.
Harrison Street’s focus on well-connected digital assets is expected to enhance its position in a rapidly evolving market. By investing in sites that are crucial for the expansion of digital infrastructure, the firm is capitalizing on the surge in data demand driven by cloud computing, edge services, and telecom operations.
Harrison Street’s Commitment to Future Growth
The closing of this fund positions Harrison Street to remain a key player in the digital asset sector. As global demand for data center capacity continues to rise, the firm is poised to take advantage of new opportunities in both primary and secondary markets.
With approximately $56 billion under management, Harrison Street is one of the leading investment firms focused on alternative real assets. Its ability to identify trends and make strategic investments has contributed to its reputation as a first mover and industry leader.
FAQ
1. What is Harrison Street’s HS Digital Fund?
The HS Digital Fund is Harrison Street’s first fund specifically focused on investing in digital assets, including data centers. It was launched to support the firm’s expansion in the growing digital infrastructure sector.
2. How much capital has Harrison Street raised for its digital assets platform?
Harrison Street has raised approximately $600 million for its inaugural data center-focused fund, the HS Digital Fund.
3. What types of data center assets has Harrison Street invested in?
The firm has invested in powered shells, carrier hotels, colocation sites, dark fiber assets, and over 6.5 million square feet of data center space with more than 2.1GW of capacity.
4. Who are some of Harrison Street’s key partners in data center investments?
Harrison Street has collaborated with several prominent partners, including Fifteenfortyseven Critical Systems Realty (1547 CSR), PowerHouse, and Lincoln, on various data center projects and acquisitions.
5. What is Harrison Street’s total assets under management?
Harrison Street currently manages approximately $56 billion in assets, with a strong focus on alternative real estate investments, including digital assets.
