Brookfield-Tied Data Center Firm Buys 10 Properties Valued At $1B
Private data center operator Centersquare paid cash for 10 data centers valued at $1B, the company announced Thursday.
The Dallas-based colocation specialist is self-funding the purchase of two data centers in Boston and Minneapolis where it has been operating under long-term lease agreements and eight additional facilities in Dallas, Toronto, Montreal, Nashville, Raleigh, North Carolina, and Tulsa, Oklahoma.
The acquisitions bring Centersquare’s portfolio to 80 facilities across the U.S., Canada and the UK. The data centers were purchased from multiple sellers and will add up to 71 megawatts of capacity in Canada and 26 MW in the U.S. to Centersquare's portfolio. The company declined to provide the purchase price or additional details.
“This package of acquisitions represents more than just volume growth — it reflects the growing strength and gaining momentum of our platform,” CEO Spencer Mullee said in a statement. “By adding capacity in strategic markets, we are positioning Centersquare to capture the surging demand for trusted, high-performance infrastructure.”
Centersquare says its portfolio serves more than 200 customers and spans more than 3.5M SF and 400 MW. The company launched in April 2024 through the merger of Evoque and Cyxtera, which at the time had a combined 320 MW of capacity across 17 markets and plans for an additional 100 MW of computing power from near-term expansions.
Cyxtera had filed for Chapter 11 bankruptcy in November 2023, which was resolved when the publicly traded Brookfield Infrastructure Partners agreed to acquire “substantially all” of Cyxtera’s assets for roughly $775M.
BIP was spun off from investment giant Brookfield Asset Management in 2008, but Brookfield maintains a general partnership interest and a major stake in the firm.
Last October, Centersquare set out to raise $985M in securitized notes. At the time, the company said 16 of its top 20 customers were investment-grade and had a market capitalization above $1B. The top three tranches of the debt received an A- rating from KBRA.
The purchases this month come as the first wave of data centers developed during this cycle are coming to market and finding lackluster demand. Data centers in many ways operate as infrastructure, offering stable returns that aren’t attractive to investors chasing higher returns in today’s artificial intelligence-driven market run.
Centersquare focuses on colocation facilities, in which the operator provides the infrastructure in the form of server rack space that enterprise clients effectively lease out and run their own hardware from. The solution is popular among tech firms looking to scale quickly and financial, government and healthcare clients that need to maintain control over their data.
The firm said it was targeting investments to serve AI companies, with a focus on the intensive workloads needed to drive generative AI, machine learning and advanced analytics.
“Over the last two years, Centersquare has continued to grow its customer and revenue base and developed a strong cost-efficient operating platform,” said Udhay Mathialagan, CEO of Brookfield Global Data Centers. “These factors position the company well to make smart, value-accretive acquisitions such as these with the benefit of high confidence levels on revenues and costs.”
