365 Data Centers, a colocation provider with 17 data centers across the U.S., has raised $16 million in Series B funding from existing investors Crosslink Capital and Housatonic Partners and has secured a $55 million credit facility from Fortress Credit Corp., an affiliate of Fortress Investment Group.
The financing will be used for ongoing operations and to help the company realize its growth strategy as a provider of colocation services in tier 1 and tier 2 U.S. markets. The funds will also be used to develop new data center products, as well as expanding its cloud hosting and managed services offerings. The new funding round follows the announcement of a new management team just a few months ago.
“This new financing allows us to continue executing on our growth strategy, whether organically or by acquisition,” said John Scanlon, CEO of 365 Data Centers. “We’ve put together an experienced management team, created a strong growth plan, and delivered great results in a matter of months. We have the faith and support of capital markets behind us, and when talent meets capital, good things happen.”
The colocation services of 365 Data Centers are tailored for small and mid-sized businesses, telecom carriers and cloud hosting service providers.
“With the largest cloud market in the world and increasing cloud adoption driving data center and colocation services expansion, North America represents a great market opportunity with expected growth of approximately 15 percent this year to more than $8 billion,” said Gary Hromadko, partner at Crosslink Capital. “We couldn’t be more pleased with the company’s success in this expanding market and remain steadfast in our ongoing support of its strategy.”
365 Data Centers recently also announced the launch of 365 Quick Start, a solution bundle that simplifies colocation services by offering online sign-up and commitment-free terms. 365 Quick Start delivers pay-for-use colocation service that would cater to the needs of SMBs and the channel.