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Colony Pours $1.2B Into Vantage Data Centers, Forms New JV

Colony Capital is forming a multibillion-dollar partnership with Vantage Data Centers to capitalize on growth in the data center industry.

Colony and Vantage officials confirmed the $3.5B deal Tuesday. 

Vantage Data Centers' Santa Clara campus

As part of the agreement, the Colony-led investor group said it will invest $1.2B in Vantage’s data center portfolio, which includes 12 centers totaling more than 1.4M SF in Santa Clara, California; Quincy, Washington; and Montreal and Quebec City, Canada.

Vantage will continue to manage and operate these assets, a statement said.

“As Colony continues to build momentum around our strategic transformation to digital infrastructure, this investment demonstrates our commitment to acquire high-quality digital assets on our balance sheet," Colony CEO Marc Ganzi said.

The global data center infrastructure market is projected to grow 6.8% from $155.2B in 2019 to $230.1B in 2025, according to ResearchAndMarkets.

ResearchAndMarkets attributes the sector's growth to demand for cloud networking, servers, computers, security, storage capacity and other networking equipment.

Vantage and Colony officials said the partnership is expected to be finalized later this month. Citi served as financial adviser to Vantage Data Centers.