Cologix Secures $500m Investment for Data Center Expansion

30 Sep 2019 by Technology

Cologix, a network-neutral, interconnection and hyperscale edge data center company, has secured investment to support its next level of growth strategy in North America. Mubadala Investment Company, the Abu Dhabi-based global investment firm, has signed an agreement to invest up to USD500 million in Cologix, subject to various regulatory approvals.

“Cologix is a high-quality company with robust fundamentals in an industry that is growing rapidly and positively impacting the lives of millions of people every day. In Cologix, we are investing in a company that has a clear strategy to build upon its existing market leading position, and one that is led by an excellent management team with which to implement that strategy,” said Mounir Barakat, Executive Director of Mubadala ICT, in a statement.

The US data center provider has a presence across 10 strategic North American markets. The company provides reliable, secure, scalable hyperscale edge data center solutions from 28 prime interconnection hubs and 5 hyperscale facilities. With the investment, Cologix will "continue to meet demand for hyperscale edge, super-efficient, low cost data centers that provide access to latency consistent, robust interconnection hubs throughout the U.S. and Canada."

Mubadala’s investment is in partnership with Stonepeak Infrastructure Partners. The company will remain the majority shareholder in Cologix. “As a global strategic investor with deep expertise in the data center market, Mubadala will add real value to the business. We’re pleased to have entered into this partnership which will see significant growth capital injected into the company and enable Cologix to reach new milestones in its growth trajectory,” commented Brian McMullen, Senior Managing Director, Stonepeak Infrastructure Partners, on the press release issued by the parties.

The investors believe that Cologix is well placed to capitalize on the continued growth witnessed by the data center industry. The strategic deal will enable significant investment for growth and development. According to Cologix, the transaction will help the company to "get to the next level, build on an existing foundation of great clients, innovative technology and strong leadership." With the additional capital, Cologix will embrace new world-class infrastructure expansion to manage the growing needs of data center customers.

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