EdgeCore Digital Infrastructure, an owner, operator, and builder of hyperscale data centers across the U.S., has been acquired by global private equity company, Partners Group. The private equity firm will invest up to $1.2 billion to fund the acquisition and buildout of existing and future data center sites.
For the biggest cloud, Internet, and technology organizations in the world, EdgeCore, with headquarters in Broomfield, Colorado, chooses, constructs, and commercializes data centers. Clients pay a premium based on their contractual power capacity under long-term data center contracts, which would generate highly visible cashflows.
EdgeCore’s existing and under-construction properties will be purchased by Partners Group through this investment, which will also provide funding for further acquisitions and buildout.
“Through our thematic investing approach, we found rising demand for data centers in the US as service providers deploy more capacity to support businesses migrating to the cloud,” said Ed Diffendal, Managing Director, Co-Head Private Infrastructure Americas, Partners Group. “EdgeCore is a unique next-generation infrastructure investment due to its strong portfolio of data center sites, advanced pipeline of shovel-ready assets in strategically important markets, and talented management team. We look forward to building out the platform.”
Opportunities Across the U.S.
On its transformative value creation strategy, Partners Group will collaborate with EdgeCore’s skilled management team, which has over 140 years of combined industry expertise. The development of current sites, purchasing and constructing new assets in the US, and increasing sustainability programs at its data center campuses are important priorities.
“EdgeCore differentiates itself through a combination of superior site locations, excellent reliability, flexible customer solutions, and speed to market,” said Tom Ray, CEO at EdgeCore. “We build data centers in areas that maximize our pool of potential customers and design them to the performance standards of the top hyperscale customers. We have identified a pipeline of opportunities across the U.S. and believe Partners Group’s extensive experience working with infrastructure platforms, coupled with its financial resources, will enable us to execute on current and future opportunities.”
Over 130 investments have been made by Partners Group’s Private Infrastructure division in 18 different countries, totaling $21 billion in assets under management.
“EdgeCore has strong infrastructure characteristics and is set to benefit from structural tailwinds across the data center sector,” said Fentress Boyse, Member of Management, Private Infrastructure Americas, Partners Group. “Businesses are increasingly shifting IT infrastructure to scaled outsourced cloud service provider data centers, which have more efficient power and cooling capabilities. The company is at an inflexion point in its growth journey and our transformational value creation plan aims to build a best-in-class sustainable digital infrastructure platform for the largest demand users in this market.”
Latham and Watkins, KPMG, Clifford Chance, and Ropes & Gray all provided advice to Partners Group. Greenberg Traurig, RBC Capital Markets, and Ernst & Young all provided advice to EdgeCore.