How will Centersquare's $1bn Expansion Support the AI Boom?
Centersquare, launched in April 2024 as a result of the merger between Dallas-based Evoque Data Center Solutions and Cyxtera Technologies from Florida, has announced the acquisition of 10 data centres across the US and Canada.
This brings the company’s total portfolio to 80 facilities which, as a result, creates greater ability to support high-density computing workloads.
Spencer Mullee, CEO of Centersquare, says: “This package of acquisitions represents more than just volume growth, it reflects the growing strength and gaining momentum of our platform.
“By adding capacity in strategic markets, we are positioning Centersquare to capture the surging demand for trusted, high-performance infrastructure. Our customers – from enterprise to scale – are looking for partners who can grow with them, and we are delivering the reliable power, connectivity, and engineered environments they need to accelerate innovation.”
Funded with cash in hand
These acquisitions and transactions have an enterprise value of US$1bn. One unique standout of the investment is that the transactions are self-funded by Centersquare, meaning that they are using cash in hand to purchase the companies.
The purchases are widespread across the US and Canada and include two companies which were under long-term leases in Boston and Minneapolis, with a further eight based in Dallas, Tulsa, Nashville, Raleigh, Toronto and Montreal.
Uniting these sites improves Centersquare’s platform, providing considerable power and increased space, supports a strong base of enterprise and hyperscale customers alike, and offers generous room for any plans for future expansion.
“Workloads are shifting, we’re seeing enterprises move off-premises, reconsider public cloud strategies, and embrace AI-driven architectures that demand radically higher power densities,” says Udhay Mathialagan, CEO of Brookfield Global Data Centers and Chair of Centersquare.
“Over the last two years, Centersquare has continued to grow its customer and revenue base and developed a strong, cost-efficient operating platform. These factors position the company well to make smart, value-accretive acquisitions such as these with the benefit of high confidence levels on revenues and costs.”
Leaning into AI adoption
With the onset of the AI boom, data centres are seeing a dramatic increase in the demand for power which, in turn, results in rethinking data centre design and operations. This means that data centre operators are facing new challenges for scalable, energy-efficient and resilient infrastructure.
To tackle these demands, Centersquare has been directing investments to ensure that solutions meet these requirements. The company’s main focus is supporting GPU-intensive workloads, which in turn drive machine learning, generative AI and advanced analytics”.
As a newly established company, Centersquare offers flexible solutions, with guaranteed 100% uptime and serves many organisations across key industries like technology, healthcare, media and financial services.
Centersquare is one of the leading suppliers of advanced location facilities in key markets across North America and the UK and the company recently featured in our “Top 100 Data Centre Companies”, taking 11th place.
