Hyperscale data center provider Vantage Data Centers announced on Tuesday a USD 6.4 billion equity investment to expand its footprint across North America and the EMEA region. The investment is led by existing investors DigitalBridge and Silver Lake. Vantage states that this investment is incremental to the recently announced EUR 1.5 billion to be invested by AustralianSuper in Vantage EMEA.
Also Read: Vantage Data Centers EMEA Secures EUR 1.5 Billion Investment from AustralianSuper
Background and Growth
Silver Lake launched Vantage in 2010 as a single data center campus in Santa Clara, California. A DigitalBridge-managed vehicle acquired Vantage in 2017 and has been the key strategic partner for nearly seven years. Vantage has now scaled with 32 operational or developing hyperscale data center campuses across five continents.
In an official release, Vantage said the new investment from DigitalBridge and Silver Lake will enable its growth and investment plan to meet customer demand. Vantage owns or controls 25 sites in North America and EMEA, totalling more than three gigawatts of expected capacity. Vantage's strategic land bank is expected to drive around USD 30 billion in additional development.
Investment Catalyst
"In connection with the investment, Vantage will continue its development of next-generation data centers, including energy-efficient and sustainable designs purpose-built for AI and large-scale cloud deployments," said the company.
Commenting on the investment, Vantage said, "Cloud computing, AI, and related technologies are driving unprecedented demand for digital infrastructure. The market opportunity in front of us is extraordinary, and we are excited to chart our next phase of growth with two premier investors who have been great partners to us and have an unmatched understanding of our global technology customers and their infrastructure needs."
Also Read: Vantage Data Centers Raises USD 1.35 Billion in Securitised Notes
DigitalBridge said, "We believe the combination of DigitalBridge's unparalleled insight into the digital infrastructure landscape and Silver Lake's technology focus creates a unique partnership to further enable Vantage's strategic expansion and long-term growth plan. Vantage is a critical partner to the leading cloud and technology platforms globally and is well positioned to continue to support the accelerating adoption of cloud- and AI-based technologies."
The transactions are expected to close in the first quarter of 2024, subject to customary closing conditions.
