Green House Data is going shopping. The growing service provider has lined up funding to accelerate its plans to grow through acquisition, and says it is seeking deals that will expand its geographic footprint and service delivery.
The expansion will be supported by a $16 million credit facility from Post Road Group, a privately held investment firm based in Stamford, Ct. Green House Data has also recently raised equity capital, and says it is actively seeking acquisition opportunities.
“Historically, our company has self-funded through bootstrapping and individual investors,” said Jason Graf, VP Finance for Green House Data. “However, as Green House Data has grown, we looked for a capital partner with greater resources to ensure we can move quickly in this dynamic market.”
The Consolidation Continues
Green House Data isn’t alone in targeting growth opportunities. There has been robust M&A activity in regional data centers, including the recent acquisitions of Cologix and 365 Data Centers. Tierpoint has been an active consolidator in regional markets, while Digital Bridge has been buying up second-tier markets through its Databank brand.
The deal activity reflects growing investor focus on the broad growth of data center services. That includes Post Road Group, which focuses on investments in real estate and telecommunications infrastructure.
“We were excited to work with Green House Data because they have developed an aggressive growth strategy to expand upon their high-growth market position,” said Michael Bogdan, Managing Partner and head of corporate investing at Post Road Group. “We look forward to seeing how Green House Data is able to increase revenue, improve their bottom line, and ultimately continue to consolidate other brands and locations into their portfolio.”
Building A National Presence
Green House Data has been opportunistic in expanding into new markets and new lines of business. While building a presence in Greater New York and the Pacific Northwest, the company has pushed into cloud, managed services and high-touch IT consulting, slowly building a roster of enterprise customers.
The company now operates more than 100,000 square feet of data center space in eight markets, with access to more than 250 carriers, service providers, and content providers
Green House Data launched with a 10,000 square foot data center in Cheyenne, supported by wind energy and the Wyoming climate, which is well suited to “free” cooling, which takes advantage of cool outside temperatures to keep servers cool. The company now operates more than 100,000 square feet of data center space in eight markets, with access to more than 250 carriers, service providers, and content providers.
In 2015, Green House Data acquired FiberCloud, an established provider of cloud hosting and colocation in the Pacific Northwest, including a presence in the Westin Building, the primary carrier hotel in Seattle. In its latest expansion, Green House acquired Atlanta-based Cirracore to expand its footprint into the Southeast. It has also worked with 1547 Realty on several data center development projects.