The most active PE investors in data centers [buyout/ takeover]

Private equity investors have developed a robust appetite for data centers in the past several years, chasing opportunities arising from the explosive growth in data use.

The demand for data centers—which enable the storage and delivery of data—has been growing rapidly along with the emergence of new technologies such as AI, 5G networks, autonomous vehicles, cloud gaming and the internet of things. Meanwhile, the COVID-19 pandemic has accelerated a spreading digital transformation that has also fed into demand for data centers globally.

Since the beginning of this year, the PE industry has completed 92 transactions in the sector totaling $41.5 billion, continuing a strong dealmaking pace set in 2020 and 2021, according to PitchBook data through August 25. The $15 billion take-private of CyrusOne by KKR and Global Infrastructure Partners is by far the largest PE-backed data center deal this year.

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The asset class’s strong growth profile has attracted a handful of investors, including EQT, KKR, The Carlyle Group and Blackstone, which have joined sector specialists like DigitalBridge and Digital Transformation Capital Partners.

Since 2012, the 10 most active PE firms in the sector by deal count have participated in a combined 154 deals backing data center operators and technology vendors serving the industry, according to PitchBook data.

Swedish PE powerhouse EQT topped the list with 17 data center transactions over the last decade, followed by US buyout firms GTCR and Berkshire Partners.

EQT acquired EdgeConneX in 2020 and increased its stake in the company last year. More recently, EQT reportedly joined a list of investors —including KKR and PAG—bidding for London-based Global Switch, which manages 13 data centers across Europe and Asia-Pacific.

Here are the 10 most active PE investors in data center deals by deal count since 2012:

EQT
Publicly traded buyout giant that invests in a variety of sectors globally. It has backed data center companies such as EdgeConneX and Global Data Center. Notable exits include Coromatic, which was sold to E.ON. In January, PitchBook reported the firm was targeting at least €20 billion (around $23 billion) for its 10th flagship buyout fund.
PE INVESTMENTS: 17
AUM: $78B
EXITS: 3
MEDIAN DEAL SIZE: $210M

GTCR
PE firm focused on growth companies in sectors including financial services, business and consumer services, healthcare, technology, and media and telecommunications. Notable data center investments include Park Place Technologies, which has been actively pursuing add-on acquisitions in recent years; it bought Curvature in 2020 and Riverstone Technology this year.
PE INVESTMENTS: 14
AUM: $27B
EXITS: 0
MEDIAN DEAL SIZE: $74M

Berkshire Partners
Buyout firm that primarily targets companies in the middle market. This year, the firm acquired a minority stake in Israeli data center operator MedOne. It also announced an exit from Teraco Data Environments, a carrier-neutral data center and interconnection services provider in Africa.
PE INVESTMENTS: 13
AUM: $24B
EXITS: 1
MEDIAN DEAL SIZE: $130M

Charlesbank Capital Partners
Middle-market PE firm that focuses on management-led buyouts and growth investments in sectors including business services, consumer and healthcare. It also engages in opportunistic credit and technology investments. Its portfolio includes Park Place Technologies.
PE INVESTMENTS: 13
AUM: $13B
EXITS: 0
MEDIAN DEAL SIZE: $74M

M/C Partners
A sector specialist dedicated to digital infrastructure and technology services. It targets small and medium-sized businesses and has backed companies including Involta, which focuses on hybrid IT and cloud infrastructure. M/C Partners sold Involta to The Carlyle Group in December.
PE INVESTMENTS: 11
AUM: $1B
EXITS: 2
MEDIAN DEAL SIZE: $50M

RedBird Capital Partners
Growth equity firm that invests in sectors including consumer products, financial services and industrial. Its data center investments include Compass Datacenters and Tierpoint.
PE INVESTMENTS: 11
AUM: $6B
EXITS: 0
MEDIAN DEAL SIZE: $448M

Waterland Private Equity Investments
PE and VC firm that invests across different verticals including digitization, healthcare, leisure and luxury. Its portfolio includes Swiss data center operator Netrics. The firm is reportedly targeting roughly $3.5 billion for its latest PE fund.
PE INVESTMENTS: 11
AUM: $10B
EXITS: 1
MEDIAN DEAL SIZE: $11M

Thompson Street Capital Partners
PE firm that focuses on founder-led, middle-market businesses. Its investments include Tierpoint and Xand.
PE INVESTMENTS: 10
AUM: $5B
EXITS: 0
MEDIAN DEAL SIZE: $320M

InfraVia Capital Partners
PE firm specialized in infrastructure and technology investments. Its data center bets include NGD, Etix Everywhere and Green. The firm sold NGD and Etix Everywhere to US-based data center operator Vantage Data Centers.
PE INVESTMENTS: 9
AUM: $4B
EXITS: 1
MEDIAN DEAL SIZE: $139M

The Carlyle Group
Industry-agnostic PE firm that focuses on buyouts and growth equity investments. Recent investments include Indian data center operator Nxtra Data and Involta.
PE INVESTMENTS: 9
AUM: $376B
EXITS: 4
MEDIAN DEAL SIZE: $108M

Source: Pitchbook