A Dallas data center company is acquiring several sites from another North Texas firm in a deal worth about $670 million.
DataBank has agreed to purchase four data centers in the Houston area from CyrusOne, according to statements. It’s expected to close by the end of the first quarter, subject to customary conditions. CyrusOne will use proceeds for future development projects.
The announcement comes after CyrusOne in November helped unveil a deal with KKR and Global Infrastructure Partners for a $15 billion transaction that will take it private.
The Houston-area transaction will add another major U.S. metro market to the DataBank lineup, bringing the number to 27 overall.
“DataBank has been strategically adding metros and facilities to its portfolio over the past three years, especially where we see strong demand for edge infrastructure among enterprise, technology and hyperscale customers,” Kevin Ooley, DataBank president and CFO, said in an emailed response to questions by the Dallas Business Journal.
The statement said that the total DataBank portfolio will feature over 65 facilities and 2 million square feet of raised-floor data center capacity. DataBank provides enterprise-class colocation, interconnection, and managed cloud services.
“Demand for data center capacity remains strong across all customer segments and locations at this time, and we expect that to continue in 2022 and beyond,” Ooley said.
The four facilities will deliver more than 300,000 square feet of raised-floor data center capacity. DataBank, part of Florida's DigitalBridge Group, will acquire the Houston West I, II and III and Houston Galleria data centers. CyrusOne will lease back the Houston West III shell to support a lease signed with a hyperscale customer in the fourth quarter.
“As we evaluate markets to enter or expand within, we look at several approaches ranging from acquiring existing data centers, to acquiring other types of facilities that can be retrofitted into a data center, to building greenfield facilities on newly acquired land," DataBank's Ooley said.
Total consideration for the transaction is subject to a net working capital adjustment, CyrusOne said in its statement.
“This divestiture further optimizes our portfolio as we redeploy capital into accretive developments across core markets with diverse hyperscale and enterprise demand in the U.S. and Europe,” David Ferdman, interim president and CEO, said in one of the statements.
