Colony Capital (NYSE: CLNY), a global investment firm with over 350 employees across 20 locations in 12 countries managing a $50 billion portfolio of real assets, is leading an investor group that will invest $1.2 billion in Vantage Data Centers’ diversified portfolio. The strategic partnership being announced would be valued at $3.5 billion in total, to accelerate the expansion of Vantage’s wholesale data centers throughout North America and Europe.
The $1.2 billion investment in Vantage Data Centers’ diversified portfolio includes 12 stabilized North American data centers, which span more than 1.4 million gross square feet and 150MW of IT capacity across key strategic markets in Santa Clara, California; Quincy, Washington; Montreal and Quebec City, Canada.
Vantage’s management team, led by Sureel Choksi, president and CEO, will continue to manage and operate these assets as part of its global data center footprint. Vantage Data Centers is intending to maintain the same level of service to its customers in each market, while simultaneously developing and operating additional data centers throughout North America and Europe. The capital provided by this transaction would support Vantage Data Centers’ strategy to expand and enhance its global footprint.
“This strategic partnership with the Colony Capital-led investor group provides Vantage with a partner that deeply understands digital infrastructure,” said Sureel Choksi, president and CEO of Vantage Data Centers. “Vantage and its investor group are now even more well positioned to capitalize on a number of attractive market opportunities and deploy the necessary capital to drive innovation, deliver state-of-the-art facilities for our customers, and accelerate our expansion plans in existing and new markets globally.”
Digital Infrastructure Investments
The strategic partnership also marks a significant milestone in Colony Capital’s ongoing digital transformation, with $200 million of the investment coming from Colony’s balance sheet. This would underscore the company’s commitment to invest in and acquire stabilized digital infrastructure assets that deliver consistent returns for Colony shareholders.
“This innovative transaction establishes the most valuable portfolio of hyperscale data center assets in North America, backed and managed by the best-in-class management team at Vantage,” said Marc Ganzi, CEO of Colony Capital. “As Colony continues to build momentum around our strategic transformation to digital infrastructure, this investment demonstrates our commitment to acquire high-quality digital assets on our balance sheet. We expect this will benefit our shareholders by providing consistent, predictable earnings from long-term leases with the highest-caliber, investment-grade customers.”
The partnership is expected to be finalized in late July. Citi served as financial advisor to Vantage Data Centers.
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