Abu Dhabi-based sovereign investor, Mubadala Investment Company has reached a deal with the US-based alternative investment firm specializing in infrastructure and real assets, Stonepeak Infrastructure Partners to sell its share in the North American data center company, Cologix for an undisclosed amount.
As part of the deal, Cologix will be transferred from Stonepeak Infrastructure Fund II LP and co-investors (Fund II) to another Stonepeak-managed vehicle comprising a combination of some existing Fund II investors and a number of new third-party investors. The transaction is expected to close in early 2022.
Cologix is North America’s leading network-neutral interconnection and hyperscale edge data center company with over 600 networks and more than 300 cloud providers across the platform. The company offers critical IT infrastructure to over 1,600 customers through its operations that span 40 interconnection and hyperscale data centers in 11 North American markets.
“Our success as a leading investor lies in our ability to identify uniquely placed quality businesses to venture into, and equally importantly, assess monetization opportunities to ensure that we maintain significant capital growth and a healthy portfolio of business investments. We firmly believe that our involvement with Cologix ticked all those boxes from the outset and we are pleased to have contributed to this successful partnership.”
Since January 2020, Mubadala has been a co-investor in Cologix with Stonepeak Fund II LP. The Abu Dhabi company had said it would invest up to $500 million in Cologix in 2019.
The companies have helped Cologix grow through mergers and acquisitions and through organic growth. Since 2017, Cologix has invested about $1 billion of incremental capital in building out the company’s footprint through various organic and inorganic initiatives.
Remote working and learning to contain the spread of COVID-19 has sparked a big demand for data centers globally. The data center services market was valued at $48.90 billion in 2020 and is expected to grow at a compound annual growth rate of 13.69 percent to reach $105.6 billion by 2026, Modor Intelligence reported.