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The Latest Mergers and Acquisitions in the Data Center Industry

12 March 2019
Latest Mergers and Acquisitions

Data center mergers and acquisitions (M&A) activity rose in 2018. New data from Synergy Research Group shows 68 M&A deals with an aggregate value of almost US$16 billion closed in 2018, and announcements made in the first few months of 2019 point to another big year for data center M&As. 

AT&T finalizes the sale of 31 colocation data centers

AT&T has closed the sale of 31 of its colocation data center facilities to Brookfield Infrastructure that was first announced in June 2018. Under the terms of the deal, AT&T received US$1.1 billion from Brookfield.

Brookfield has organized the data center assets under a wholly-owned subsidiary, Evoque Data Center Solutions (“Evoque”). AT&T will subsequently offer its business customers Evoque’s colocation services through AT&T’s global colocation ecosystem. AT&T’s extensive ecosystem program provides its customers access to over 350+ data centers across the world.

EdgeConneX continues to grow its European presence

EdgeConneX, ranked 10th on the Cloudscene North America Leaderboard, increased its presence in the established European market by purchasing Vodafone’s Munich facility. The purchase continued EdgeConneX’s recent push into Europe after its recent acquisition of a facility in Warsaw, Poland.

EdgeConneX’s EMEA Managing Director, Dick Theunissen stated that the company’s entry into Munich was driven by the area’s long-time status as an important market for network and content peering, and growth as a cloud epicenter. It also creates an alternative to Frankfurt-based data centers.

Berkshire Partners acquires a majority stake in Teraco

Boston-based private equity firm Berkshire Partners recently announced the acquisition of a majority stake in Teraco, South Africa’s largest data center provider. Teraco, currently ranked 5th on Cloudscene’s EMEA Leaderboard, said that it would use the additional investment to double its existing data center capacity, and plans to increase total power capacity to 60MW from its current 30MW.

Teraco currently has facilities in the South African cities of Johannesburg, Cape Town, and Durban. The company plans to build a new data center in Gauteng, as well as add to its existing Cape Town facility.

GI Partners purchases two data centers from NTT Data

Leading San Francisco-based private investment firm, GI Partners, has continued its focus on technology infrastructure investments, with the purchase of two data center properties from NTT Data. The properties, located in Plano, Texas and Quincy, Washington, add to GI Partners’ already extensive portfolio of data center and technology-intensive properties.

IPI combines Infomart and T5 assets to establish new data center provider

IPI Data Center Partners and Infomart Data Centers announced in mid-January the formation of Stack Infrastructure. Stack was established as a result of the merger of IPI’s T5 data centers, along with the remaining properties of Infomart, after it sold its Dallas carrier hotel to top-ranked data center ecosystem provider, Equinix.

Stack boasts an existing 1.5 million square feet of space and 100MW of data center capacity. The data centers are spread across eight sites, including locations in Northern Virginia, Silicon Valley, Dallas-Fort Worth, and Chicago currently the largest data center markets in the US. Stack also has a presence in the secondary markets of Portland and Atlanta.

New Continuum Holdings purchases Chicago data center

New Continuum Holdings Corporation, which operates New Continuum Data Centers (NCDC) recently closed a deal to purchase the property where its mission-critical data center is housed in West Chicago, Illinois.

This purchase completes a project that began with leasing the property in the fall of 2013.  The company then began operating a multi-tenant data center on the premises in 2015 when the initial construction was completed and added incremental cooling capacity in the summer of 2018.

CIM Group and 1547 Critical Systems Realty acquire data center in New York

CIM Group and 1547 Critical Systems Realty recently announced the joint acquisition of an existing 232,000 square foot data center in Orangeburg, New York. The partially-occupied facility currently provides 7MW to tenants across 28,000 square feet with an additional capacity of 17MW still available.

Originally re-developed from an office and industrial warehouse in 2012, the data center site has the capability for a private, 50 MW substation and a 230,000 square foot expansion, ideal for use as a business continuity backup data center.

 

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