Raises money from large investors to buy cell towers, data centers, and fiber networks, then runs them directly.
At a glance
- Depends onMidstream position: 4 outgoing, 5 incoming connections
- ScaleMarket cap is above the global median
Raises money from large investors to buy cell towers, data centers, and fiber networks, then runs them directly.
DigitalBridge raises capital from institutional investors, pools it into private funds, and uses it to buy cell towers, data centers, and fiber networks that it then operates directly rather than handing off to outside managers. That direct control matters because it means the same organization that signed the lease is also the one deciding how much power each data center tenant can draw and which fiber routes get prioritized — decisions that cause hyperscale tenants like AWS and Microsoft to install dedicated equipment and custom fiber connections that would take months and millions of dollars to move. Wireless carriers face the same gravity from the other side: their tower leases name specific coordinates because the coverage geometry of their network depends on exactly where each tower stands, so switching means rebuilding their coverage map. The whole structure holds only as long as DigitalBridge retains that direct operational authority — if grid operators or zoning boards in Northern Virginia or Silicon Valley reallocate power before new supply can be permitted, additional institutional capital sitting in the funds cannot be converted into new leasable capacity, no matter how strong tenant demand is.
How does this company make money?
The company earns money in three ways. First, it charges institutional investors a management fee based on how much capital they have committed to each fund, regardless of whether that capital has been fully invested yet. Second, once a fund performs above a set return threshold, the company takes a share of the profits, called carried interest. Third, it collects direct rental income from wireless carriers that lease tower space and from cloud and telecommunications companies that pay for space and power inside its data centers.
What makes this company hard to replace?
Wireless carriers sign multi-year leases that name specific tower coordinates, because the coverage geometry of their network depends on exactly where each tower sits. Moving to a different tower in a different location would break their coverage plans. Data center tenants face an even more concrete barrier: they have physically installed their own fiber connections and custom equipment configurations inside the facility, and undoing that work takes months and costs millions of dollars.
What limits this company?
In Northern Virginia and Silicon Valley — the two markets where demand is highest — the local electric grid and zoning boards decide how much power any data center can draw. Right now, tenant demand in both places is greater than what the permitted power supply allows. That means even when the company has investor money ready to deploy, it cannot build or lease more data center space until grid operators or local governments approve more power capacity.
What does this company depend on?
The company cannot operate without five things: reliable power from the utility grid for its data centers; zoning permits and telecommunications licenses to build and keep towers standing; rights-of-way across multiple jurisdictions to run fiber networks; committed capital from institutional investors such as pension funds and sovereign wealth funds; and specialized contractors who understand both tower construction and data center engineering.
Who depends on this company?
Wireless carriers depend on the company's towers to provide coverage — if those towers became unavailable, carriers would have gaps in their networks and lose capacity. Hyperscale cloud providers like AWS and Microsoft depend on the data centers — losing that space would cause service interruptions and slower response times for their customers. Enterprise customers who rely on the fiber networks would lose internet and cloud connectivity. Institutional investors such as pension funds and sovereign wealth funds depend on the assets performing as expected to receive the steady infrastructure returns they planned for.
How does this company scale?
The processes the company uses to evaluate and manage assets — due diligence, financial modeling, asset oversight — can be applied to additional towers, data centers, and fiber networks without much extra cost. What does not scale easily is the specialized human expertise required to assess power systems, judge the structural integrity of towers, and understand how telecommunications equipment fits together. Experienced people who understand both real estate and technology infrastructure are hard to find and hard to replace, so that remains a constraint as the company grows.
What external forces can significantly affect this company?
Federal Communications Commission policies on spectrum and 5G deployment increase demand for small cell towers and fiber densification, which benefits the company but also shapes where and how fast it can build. Rising interest rates make it more expensive to borrow money for large infrastructure acquisitions and push down the market value of existing assets. U.S.-China technology restrictions complicate equipment sourcing and affect relationships with any tenants connected to Chinese telecommunications companies.
Where is this company structurally vulnerable?
If the Federal Communications Commission, state utility commissions, or municipal zoning boards required infrastructure owners to give any tenant equal access — stripping the company's authority to choose tenants and allocate power as it sees fit — the switching costs and lock-in that make each lease so durable would disappear. Without that control, the company would look like a passive landlord rather than an operator, and the core advantage that justifies its structure would be gone.
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