Vantage Data Centers, a provider of hyperscale data center campuses, and an investor group led by Colony Capital, Inc. (NYSE: CLNY), a global investment management firm, have announced they have entered into a definitive agreement to form a strategic partnership valued at USD 3.5 billion to accelerate the expansion of Vantage´s best-in-class, wholesale data centers throughout North America and Europe, the company said.
As part of the agreement, the Colony-led investor group will invest USD 1.2 billion in Vantage´s diversified portfolio, including 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 will maintain the same level of superior service to its valued customers in each market, while simultaneously developing and operating additional data centers throughout North America and Europe. The capital provided by this transaction will support Vantage´s strategy to expand and enhance its global footprint.
The strategic partnership also marks a significant milestone in Colony´s ongoing digital transformation, with USD 200 million of the investment coming from Colony´s balance sheet, underscoring its commitment to investing in and acquiring world-class, stabilized digital infrastructure assets that deliver consistent returns for Colony shareholders.
Citi served as financial advisor to Vantage Data Centers.
Colony Capital is a global investment firm with a heritage of identifying and capitalizing on key secular trends in real estate. The company manages a USD 50 billion portfolio of real assets on behalf of its shareholders and limited partners, including over USD 20 billion in digital real estate investments through Digital Colony, its digital infrastructure platform. For more information, visit www.clny.com.
Vantage Data Centers powers, cools, protects and connects the technology of the world´s well-known hyperscalers, cloud providers and large enterprises. Developing and operating across six markets in North America and five markets in Europe, Vantage has evolved data center design in innovative ways to deliver dramatic gains in reliability, efficiency and sustainability in flexible environments that can scale as quickly as the market demands. For more information, visit www.vantage-dc.com.