14 November 2022
Partners Group, a leading global private markets firm, has, on behalf of its clients, acquired EdgeCore Digital Infrastructure (“EdgeCore” or “the Company”), an owner, operator, and builder of hyperscale data centers in the US. Partners Group will invest up to USD 1.2 billion to fund the acquisition and buildout of existing and future data center sites.
Through this investment, Partners Group will acquire EdgeCore’s existing and under construction sites, and fund future acquisitions and buildout. Headquartered in Broomfield, Colorado, EdgeCore selects, builds, and commercializes data centers for the world’s largest cloud, internet, and technology companies. Data center contracts are often long-term, with customers charged a price based on their contracted power capacity, leading to highly visible cashflows. The Company is well-positioned to benefit from global digitization themes, such as the growth of cloud computing, machine learning, AI, and 5G technologies, which are driving increasing demand for data center processing and storage. Mobile data traffic in North America is expected to grow at 24% CAGR through to 2027.
Partners Group will work with EdgeCore’s experienced management team, which has over 140 years of combined industry experience, on its transformational value creation plan. Key initiatives include existing site expansion, acquiring and building future assets in the US, and expanding sustainability initiatives at its data center campuses.
Ed Diffendal, Managing Director, Co-Head Private Infrastructure Americas, Partners Group, says: “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. 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.”
Tom Ray, Chief Executive Officer, EdgeCore, comments: “EdgeCore differentiates itself through a combination of superior site locations, excellent reliability, flexible customer solutions, and speed to market. 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 US 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.”
Fentress Boyse, Member of Management, Private Infrastructure Americas, Partners Group, adds: “EdgeCore has strong infrastructure characteristics and is set to benefit from structural tailwinds across the data center sector. 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.”
Partners Group’s Private Infrastructure business has USD 21 billion in assets under management and has made over 130 investments in 18 countries globally.
Partners Group was advised by Latham and Watkins, KPMG, Clifford Chance, and Ropes & Gray. EdgeCore was advised by Greenberg Traurig, RBC Capital Markets, and Ernst and Young.Source: Partners Group
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