Houston Data Centers Sold for $670 Million

HOUSTON – (Realty News Report) – A portfolio of four Houston data centers, which provide for cloud data management and connectivity, is being sold for $670 million.

DataBank, a provider of enterprise-class colocation, interconnection and managed cloud services, is buying the data centers from Dallas-based CyrusOne Inc., a global data center REIT.

The transaction, which includes 300,000 SF in four buildings, is expected to close late in the first quarter of 2022.

The deal will make Digital Bridge’s DataBank company a major provider of internet cloud services in Houston.

Buyer Will Be Houston’s Largest Independent Data Center Provider

“The transaction positions DataBank as the largest independent data center provider in Houston, the nation’s fourth-largest metro area,” DataBank said in a press release. “The new facilities will collectively add more than 300,000 SF of raised-floor data center capacity and 42.5 MW of installed critical IT load, as well as a roster of blue-chip customers from the area’s fast-growing healthcare, financial, energy, media and software sectors.”

The acquisition includes CyrusOne’s Houston West Campus – is the region’s primary interconnection point, with over 30 fiber networks, 3,500 cross connects and public cloud on-ramps from AWS and Google. Located near Beltway 8 between Highway 290 and Interstate 10 along a major fiber corridor in Houston, the Houston West Campus is strategically positioned with access to significant and redundant utility power feeds and access to the fastest and most reliable telecommunications networks.

DataBank will acquire the Houston West I, II and III and Houston Galleria data centers from CyrusOne. Additionally, CyrusOne will lease back from DataBank the Houston West III shell to support a lease signed with a hyperscale customer in the fourth quarter of 2021.

DataBank enables the world’s largest enterprises, technology, and content providers to consistently deploy and manage their infrastructure, applications and data on the right platform, at the right time, in the right place. Our colocation and edge infrastructure footprint consists of 65+ data centers and 20 interconnection hubs in 30+ markets, on-ramps to an ecosystem of cloud providers, and a modular edge data center platform with virtually unlimited reach.

Following the close of the transaction, DataBank’s total portfolio will feature more than 65 facilities and 2 million SF of raised-floor data center capacity.

“We are excited to execute on our capital recycling initiative to fund our continued growth,” said David Ferdman, CyrusOne Interim President & Chief Executive Officer. “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. We are pleased to partner with the DataBank team on this important transaction for our respective companies.”

The transaction is being funded by an investor group led by DigitalBridge of Boca  Raton, Fla.

Jan. 19, 2022 Realty News Report Copyright 2022

Check out the book Houston 2020: America’s Boom Town – An Extreme Close Up  by Ralph Bivins. Available on Amazon  http://tiny.cc/4a2g6y  

Houston 2020 Ebook version  https://tinyurl.com/4xm7z8b5      

 ECONOMIC FORECAST – The RALPH BIVINS PROJECT podcast welcomed guest Frank Nothaft, chief economist of CoreLogic. LISTEN:

Image: Courtesy CyrusOne

File: Houston Data Centers Sold

Related posts

In Pursuit of IOS

Realty News Report

Major Office Park Nears Full Occupancy

Realty News Report

Bury the Hatchet: Don’t Clear-Cut Urban Tree Canopy

Realty News Report

Leave a Comment