Cyxtera Technologies will become a public company through a merger with a SPAC sponsored by Starboard Value. The deal, which values Cyxtera at $3.4 billion marks the first major deal by a group of SPACs targeting the data center sector.
More data center mergers and acquisitions (M&A) appear likely amid reports of two new special purpose acquisition corporations (SPACs) featuring teams of data center executives. Meanwhile, the industry’s busiest consolidator is raising a huge new round of capital.
Developer Sabey Data Centers has raised $150 million from new strategic partner Manulife Investment Management to help its expand Sabey’s growing operations.
American Real Estate Partners (AREP) has teamed with investor Harrison Street to acquire a piece of prime real estate in Ashburn’s “Data Center Alley” where it plans to build a 265,000 square foot data center.
The data center industry is busier than ever. With more new players entering the industry, this has meant lower pricing on large deals in the most competitive markets.
Vantage Data Centers has acquired the hyperscale data center business from Hypertec in Montreal, expanding its footprint in the Quebec market to 81 megawatts of IT capacity across three campuses.
365 Data Centers is acquiring Atlantic Metro Communications, which provides network and cloud services to enterprise customers, continuing to build 365’s presence in the data-intensive Northeast corridor.
Vantage Data Centers has raised $1.25 billion in equity funding from its current investors, led by Digital Colony. The funding reinforces the value proposition of building wholesale data center space for hyperscale customers, including the leading players in cloud computing and online commerce.
Wall Street continues to pour money into the data center sector. Goldman Sachs is investing $500 million to create Global Compute Infrastructure LP, a new data center development platform led by former executives of Digital Realty.
Private equity firm Stonecourt Capital has acquired regional data center specialist 365 Data Centers, and says it intends to invest “significant additional capital” to accelerate the company’s growth.