Partners Group Acquires EdgeCore Digital Infrastructure
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An investment of as much as $1.2 billion is expected to fund the purchase and buildout of existing and future data center sites.
Global private markets firm Partners Group, of Baar-Zug, Switzerland, has acquired EdgeCore Digital Infrastructure, which builds, owns and operates hyperscale data centers in the U.S., Partners Group announced on Friday, Nov 11.
Partners Group has stated that it intends to invest up to $1.2 billion to fund the acquisition and buildout of existing and future data center sites.
An EdgeCore media representative confirmed to Commercial Property Executive that no dollar value for the transaction is being released.
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Partners Group will acquire EdgeCore’s existing and under-construction sites and fund future acquisitions and buildout.
Headquartered in Broomfield, Colo., EdgeCore is active in four markets: Ashburn (Sterling), Va.; Mesa, Ariz. (five buildings totaling 1.1 million square feet and 170 MW); Reno, Nev. (five buildings totaling 1.3 million square feet and 180 MW); and Santa Clara, Calif. (two buildings totaling 540,000 square feet and 72 MW).
In a prepared statement, EdgeCore CEO Tom Ray said the company builds data centers in areas that maximize its pool of potential customers and design them to the performance standards of the top hyperscale customers. He added that the company identified a pipeline of opportunities across the U.S. and believes Partners Group’s extensive experience working with infrastructure platforms, coupled with its financial resources, will enable EdgeCore to execute on current and future opportunities.
Partners Group was advised by Latham & Watkins, KPMG, Clifford Chance and Ropes & Gray. EdgeCore was advised by Greenberg Traurig, RBC Capital Markets and Ernst & Young.
An electric market
The U.S. data center market is buzzing, with more than 453.4 MW of net absorption in the first half of this year in the seven primary markets, according to an October report from CBRE Research.
Concurrently, user requirements continue to expand; recent leases have exceeded 60 MW and even 100 MW. All of that in turn has helped to drive overall vacancy down to a record low of 3.8 percent, CBRE reports.