Data Center Investments

Part
01
of one
Part
01

Data Center Investments

For this redo request, I have focused my research efforts specifically on the additional private equity companies that you highlighted, to include EdgeCore, IPI and GI PartnerEdgeCore Internet Real Estate LLC. Edgecore established its first data center in Mesa, Arizona to enable them to offer cloud-connected data center solutions to Fortune 1000 clients, whereas GI Partners and IPI have purchased data centers in Richardson, Texas, Broomfield, Colorado and Portland, Oregon, respectively. Edgecore's data center costs in Mesa will cost an estimated $150 million. The financial terms for GI Partners and IPI were undisclosed.

METHODOLOGY

I conducted an exhaustive search of corporate websites, market reports, white papers and trusted media sites to provide you with details on where each of these companies are investing, the reasons behind their investments and the investment amount. I was unsuccessful in locating any information specifically regarding financial information for IPI and GI Partners. After conducting an exhaustive press search as well as an advanced boolean search, I have determined that this information is not publicly disclosed. Below you will find a deep dive of my research.

EDGECORE

EdgeCore Internet Real Estate LLC, headquartered in Denver, broke ground earlier this month on its "first $150 million data center in Mesa, Arizona with an anticipated $2 billion company and customer investment at full build out." The company's Senior Vice President of revenue, Ryan Oro, stated that the reason behind this investment was that Mesa had the "scale there were looking at for a longtime deployment and "a long runway with access to power and fiber infrastructure in a low-risk natural disaster area.

The company is building a 180,000-square-foot data center in the Elliot Road Technology Corridor. Ora reported that the key reason behind this investment was to enable the company to offer "cloud-connected data center solutions to Fortune 1000 clients."

EdgeCore plans to establish and additional five data centers in the near future, with goals of closing the purchase of sites in "Dallas and Reno by April" and to purchase an additional "three sites in ‘tier one’ markets (think North Virginia, Silicon Valley or Chicago) before the end of the year."

GI PARTNERS

GI Partners has purchased data centers in Broomfield, Colorado and Richardson, Texas. The company purchased the Broomfield Corporate Center, located a 11525 Main Street, Broomfield, Colorado, through the TechCore, LLC Fund. The TechCore LLC fund was established by GI Partners for "for handling investments of $1 billion in discretionary real estate purchases on behalf of the California Public Employees Retirement System, focused on data centers and other technology." This is a 92,800 sq ft. site and it was previously under a "long term contract to the financial services firm TIAA-CREF, which has over $500 billion in managed assets."

GI Partners bought a 300,000 square foot site in the Synergy Park facility in Richardson, Texas that was previously owned by ViaWest. They made this purchase using the $500 million DataCore, LP Fund. This fund is managed by the California State Teachers Retirement System and is focused on "technology advantaged real estate investments." Although no specific reasons were mentioned for this investment, I was able to conclude that GI was previously an investor for ViaWest data centers, which may have sparked their interest.

In January 2018, the company the acquired the 215,000 sq. ft. Ericsson ICT Data Center located i Montreal, Quebec. The property was acquired directly from Ericsson, who will lease back a portion of the site. Mike Armstrong, Director of GI Partners, stated that the reason behind this investment was that, “Montreal is a dynamic data center market, due to its access to cost effective hydroelectric power that is attractive for scale and hyper scale deployments" and that the site will "provide users the opportunity to establish in market immediately with significant expansion potential under the same roof.” The property is N+1 or higher with 11 megawatts of redundant power.

In 2016, GI Partners was asked to speak about their data center investments, however they did not respond beyond the information provided above.

IPI DATA CENTER PARTNERS

IPI Data Center Partners acquired three data centers from Infomart Data Centers this year, however financial terms were not publicly disclosed. One of the newest acquisitions is in Hillsboro, Oregon and houses the new LinkedIn facility.

The company also recently acquired three sites for a total 665,000 square feet of space, from ABS. These properties are located in Hillsborough, Oregon; San Jose, California and Ashburn, Virginia. The details of the investment and financial information of the deal was not disclosed. Although there appears to an increased interest in Hillsborough, Oregon, no specific reasons were disclosed.

CONCLUSION

To wrap things up, I have provided you with details on where EdgeCore, GI Partners and IPI are investing, the reasons behind their investments, the amounts of investments, where disclosed.
Sources
Sources