Data Center Investments
Private funds that are investing in data centers in North America include Equinix, Digital Realty Trust, Flexential, Digital Bridge, CyrusOne, and CoreSite. In addition to identifying these companies, I've looked into each one to find examples of their recent investments, including where and why they are investing and the value of their investments. While all of these companies are based in North America, some of them are global companies, so I've included some global investment examples to paint a more accurate picture of each company's investing activities; however, I've also made sure to include specific examples from North America for every company. You'll find a deep dive of my research below.
data center investment firms
According to this article, Equinix is the market leader in data centers. The REIT operates in three core segments: the Americas, EMEA, and APAC. The company's recent data center investments include: 1. Acquired Infomart Dallas data center, an $800 million acquisition. This acquisition "broadens Equinix capabilities by strengthening interconnection density on the Equinix global platform; providing opportunity to accelerate business relationships in industries such as banking, technology, energy and healthcare; and supporting the Equinix enterprise offering." 2. Acquired Australian data center company Metronode, including 10 data centers, for $790 million. The goal of this acquisition was to strengthen Equinix's leadership position in the APAC market and to support the global growth of the company and its clients. 3. More than $500 million invested in capital expenditures for organic expansion of existing data centers. This company is a real estate investment trust specializing in data centers. It's one of the largest REITs in the world, with 157 operating properties and 2,300 customers. Just in the last year, Digital Realty has expanded its operations in such international locations as Germany, Japan, Silicon Valley, Atlanta, and Australia. This includes the following investments: 3. A joint investment venture in Japan with Mitsubishi Corp. involving three properties and $350 million. According to Digital Realty's CEO, "Japan is a highly strategic country for Digital Realty's global data centre platform, and this relationship with Mitsubishi Corporation represents a major step towards strengthening our presence in Japan." 4. Expansion of the firm's Silicon Valley data center, a $75 million investment project. According to an industry analyst, the expansion "builds on the foundation the company has established, giving enterprises, network operators and service providers the opportunity and the expertise they require to privately interconnect with critical ecosystems like the cloud." 2. A 100,000 square foot expansion of the company's Oregon data center in order to accommodate high demand in the area. 3. Acquisition of a large data center in the Philadelphia region for $33 million. The intention behind this acquisition was to offer customers benefits such as "increased scale, a coast-to-coast data center presence and a comprehensive and robust suite of IT solutions. Investment company Digital Bridge focuses on investing in communications infrastructure, including data centers. Recent investments from this firm include: 1. Acquired Dallas-based data center company DataBank, including the company's six data centers. The financial terms of the deal were undisclosed, but the deal gave Digital Bridge entry into the data center market and a geographic presence in three major cities. 2. Acquired C7 Data Centers in Salt Lake City for an undisclosed amount to continue the company's expansion in the U.S. 3. Acquired data center facilities in Pittsburgh and Cleveland from 365 Data Centers. According to this article, "DataBank considers the data centers in Cleveland and Pittsburgh 'key interconnection assets' and plans to leverage them as 'anchors' for further expansion in the two markets."
This real estate investment trust specializes in carrier-neutral data centers and, while based in the U.S., has a global presence. CyrusOne's recent investments include:
Another real estate investment trust, CoreSite operates 17 data centers across eight North American markets. The company had a total $213 million worth of data center projects under construction at the end of 2017. Recent investments from the company include: 1. Purchase of two acres of land near Chicago for $4.5 million, on which CoreSite plans to develop a turn-key data center to expand its Chicago presence. 2. Development projects under construction: a $22 million center in Reston, VA; a $45 million center in Los Angeles; and a $17 million center in Washington. All of these centers will expand CoreSite's presence and capabilities in these markets. 3. Initiated a 10-year, $20 million lease to expand to a new data center in Washington, D.C. The goal of the expansion was to "meet the new demand generated by our DC1 facility, which is the premier network-centric colocation facility in the Washington, D.C. sub-market. DC1 has more than 60 network, cloud and IT service providers among our customer community."
To wrap up, private funds that are investing in data centers in North America include Equinix, Digital Realty Trust, Flexential, Digital Bridge, CyrusOne, and CoreSite.