EQT and Sixth Street Join Forces: EdgeConneX Takes a Leap
EQT and Sixth Street Team Up for EdgeConneX
In a significant move for the data center industry, EQT and Sixth Street have announced their collaboration to bolster EdgeConneX's capabilities in delivering top-notch data center services and artificial intelligence infrastructure.
Minority Stake Acquisition by Sixth Street
Sixth Street will acquire a minority interest in EdgeConneX, further diversifying the investor base and introducing new resources as well as expertise. This partnership is poised to support EdgeConneX's long-term ambitions as a premier global provider in the data center sector.
Strategic Importance of the Transaction
EQT Infrastructure IV and EQT Infrastructure V funds have signed an agreement to facilitate this minority stake sale, enabling EdgeConneX to continue expanding its data center capabilities. As a result, EQT will remain the largest shareholder after the transaction concludes.
EdgeConneX's Growth Trajectory
Since its inception in 2020, EdgeConneX has focused on providing energy-efficient and eco-friendly data center solutions tailored for AI applications and extensive cloud deployments. The company has made remarkable strides, having tripled its data center capacity and broadening its operational landscape to include numerous markets worldwide.
A Global Leader in Data Center Capacity
Today, EdgeConneX operates or is developing around 80 data centers, spanning more than 50 markets across North America, Europe, Asia-Pacific, and South America. This extensive reach solidifies its position as a major player in the global data center market.
Accelerating Innovations in AI Infrastructure
This strategic partnership also emphasizes EdgeConneX's commitment to delivering high-performance, scalable data center solutions that can effectively support the burgeoning demands of AI. Jan Vesely, a partner at EQT Infrastructure, expressed optimism about EdgeConneX’s capabilities.
Building the Future Together
“With this transaction, we believe EdgeConneX is exceptionally positioned to contribute to the next wave of technological advancements brought on by AI,” Vesely stated. The alignment with Sixth Street's experience in digital infrastructure and real estate will further enhance EdgeConneX's operational efficiency and growth strategies.
Looking Ahead: Customary Approvals and Timeline
The completion of this deal is contingent upon customary conditions and approvals, with the expectation that it will finalize in the fourth quarter of the year.
Expert Guidance in the Transaction
For this strategic move, Morgan Stanley & Co. LLC acted as the lead financial advisor, with Goldman Sachs also advising. Simpson Thacher & Bartlett provided legal advice to EQT Infrastructure, while Centerview Partners LLC served as the exclusive financial advisor for Sixth Street.
Frequently Asked Questions
What is the significance of EQT's partnership with Sixth Street?
This partnership allows for resource sharing and expertise integration, enabling EdgeConneX to enhance its data center capabilities while maintaining EQT as the primary stakeholder.
How many data centers does EdgeConneX currently operate?
EdgeConneX operates or is developing approximately 80 data centers globally, covering over 50 markets across various regions.
What are the expectations for the transaction timeline?
The transaction is set to close in the fourth quarter of the year, pending regulatory approvals and customary conditions.
Who served as financial advisors for the transaction?
Morgan Stanley & Co. LLC acted as the lead financial advisor for EQT, while Centerview Partners LLC served in the same capacity for Sixth Street.
What is EdgeConneX's focus within the data center market?
EdgeConneX focuses on energy-efficient and sustainable data center designs optimized for artificial intelligence and large-scale cloud operations.
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