DataBank, a supplier of enterprise-grade colocation, interconnection, and managed cloud services, has agreed to pay $670 million to CyrusOne for four existing data centers in the Houston, Texas metro region. Houston will become DataBank’s 27th major U.S. metro area as a result of the deal.
The four Houston data centers will provide more than 300,000 square feet of raised-floor data center capacity and 42.5 MW of vital IT load, as well as a long list of blue-chip clients from the fast-growing healthcare, finance, energy, media, and software industries.
DataBank’s overall portfolio will now include over 65 data centers with a combined capacity of 2.0 million square feet of raised-floor colocation space. The company’s colocation and edge infrastructure footprint further include 20 interconnection hubs across 30+ markets, as well as on-ramps to a cloud ecosystem.
The deal’s completion is contingent to usual conditions and regulatory approvals. The deal is expected to finalize in late Q1 of 2022.
“We are excited to add the Houston market to the DataBank data center portfolio,” said Raul Martynek, Chief Executive Officer (CEO) at DataBank. “With our deep roots in Texas, it was a logical metro for us to expand into and allows us to bring our digital infrastructure and interconnection solutions to the 4th largest metro in the U.S. With the addition of Houston, DataBank now covers 27 metro markets, a larger geographic data center footprint in the U.S. than any other data center operator.”
The transaction’s underwritten debt financing was supplied by TD Securities and CIT, a part of First Citizens Bank. In conjunction with the acquisition, Jones Day served as DataBank’s legal counsel.