Fengate to Amplify eStruxture’s Hyperscale Data Centres
As demand for data storage continues to grow, data centres are teaming up with those in the technology and finance sectors to build the necessary infrastructure to process digital information.
90% of the world's data was generated in the last two years. From 2010, the amount of data generated daily has grown 74x, with videos accounting for more than half of internet data traffic. It all has to be stored somewhere.
In Canada, Fengate Asset Management and eStruxture Data Centers have shared that they have completed a US$1.3bn transaction, the biggest to ever be made in the Canadian data centre sector, which will expand eStruxture's portfolio of 15 facilities across the country, to meet the demand for data centre capacity.
Fengate expands equity stake in eStruxture
Alternative investment manager Fengate is focused on infrastructure, private equity and real estate strategies, with offices across Canada and the US. Since 2006, the firm has been investing in infrastructure
with a focus on mid-market greenfield and brownfield assets in the transportation, energy transition and the digital sectors.
eStruxture is the biggest Canadian data centre provider with locations in Montreal, Toronto, Calgary and Vancouver. The company offers colocation, bandwidth, security and support services to customers across Canada in its carrier and cloud-neutral facilities.
Following this new deal, Fengate has increased its equity stake in eStruxture. The investment includes newly-raised capital from a team of institutional secondary investors, co-led by Partners Group, a leading global private markets firm, acting on behalf of its clients. Pantheon is a secondary investor.
Fengate is investing on behalf of Fengate Infrastructure Fund III, Fengate Infrastructure Fund IV and their affiliated entities.
eStruxture poised for hyperscale growth
This investment will advance eStruxture's hyperscale growth, providing a launch pad for transformative expansion and solidifying its leadership in Canada's digital infrastructure market.
Jonathan Wener has strong confidence in eStruxture’s strategic vision and growth trajectory. He and the Wener Family Office, including Todd Coleman, Founder, President and CEO of eStruxture, as well as the accompanying management team, will also reinvest a portion of their holdings in eStruxture.
"The eStruxture team is truly best-in-class,” said Jonathan Wener. “Eight years ago, eStruxture was nothing but an idea. Today, we are Canada's leading data centre platform. Notwithstanding all we have accomplished, we believe the best is yet to come."
"This partnership with Fengate marks a transformative moment for eStruxture,” said Todd. “It not only reflects our shared commitment to advancing Canada's digital landscape but also positions us to lead in delivering highly scalable and sustainable digital infrastructure solutions that will empower businesses across Canada and beyond."
"For years, Fengate has had a front-row seat to the meteoric success of eStruxture,” added Lou Serafini Jr., President and Chief Executive Officer at Fengate. “That intimate perspective gives us full confidence to continue our relationship through this next exciting growth phase." "eStruxture is paving the way for Canada's digital infrastructure sector," continued George Theodoropoulos, Managing Partner at Fengate. "Digital is a sector focus for our infrastructure business, and increasing our investment in eStruxture is an exciting and significant step toward realising our digital infrastructure strategy."
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