Colovore has secured $925 million through a debt facility from Blackstone to expand its presence in the liquid-cooled data center sector. Specifically, the funds will be used to develop sites in major metro markets, according to a statement from King Street Capital Management's affiliate.
Currently, Colovore operates four data centers in cities including Reno, Santa Clara and Chicago. According to the Santa Clara-based firm, its facilities offer cooling densities per cabinet that top the market, higher efficiency and are smaller in size. Furthermore, Colovore sets itself apart by leveraging modern AI chips, utilizing enhanced liquid-cooled AI accelerators and even supporting traditional enterprise hardware.
"With more than a decade of experience in liquid cooling, Colovore is uniquely positioned to provide infrastructure to meet the soaring demand for high-density, AI-optimized data centers," said Brian Higgins, founder and managing partner of King Street.
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"We look forward to further leveraging King Street's real estate and credit capabilities to support their rapid expansion."
It's been about a year since King Street first acquired a majority stake Colovore. After the deal was struck, Colovore said it had plans to expand into more Tier One markets throughout the country.
Sean Holzknecht, president and co-founder of Colovore, said that next phase for the company is readying its liquid cooling data centers for core and edge interference.
The data center sector overall continues to build euphoria in CRE. Goldman Sachs projects that more than $1 trillion in capital will be spent on AI-related infrastructure within the next several years. This will be spread across data centers, semiconductors and network upgrades.
This year alone has seen a number of big data center investments, including Blackstone's energy investment unit agreeing to acquire a 74-megawatt natural gas-fired power plant located in Loudoun County. Reuters reported the deal to be worth roughly $1 billion. Another big one was EDGNEX Data Centers by DAMAC, announcing it would enter the U.S. market with a $20 billion investment that includes existing data centers and platforms. Additionally, EDGNEX noted that there is potential to double its initial $20 billion pledge.
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