CVC DIF Buys German Data Center Firm firstcolo

CVC DIF, the infrastructure investment arm of global private markets firm CVC, has secured a majority stake in firstcolo, a prominent German data center operator. This strategic acquisition, executed through the DIF Value Add IV fund, signals a significant expansion for CVC DIF within the rapidly growing European digital infrastructure sector. The transaction is anticipated to finalize by the close of September, pending standard regulatory approvals.

firstcolo, established in 2007 and headquartered in Frankfurt, operates two well-established colocation facilities that are currently near full capacity. The company provides a comprehensive suite of services, including colocation, cloud integration, network connectivity, and managed IT solutions, catering to over 350 enterprise clients. This integrated service model has fostered robust, long-term customer relationships, contributing to predictable recurring revenue streams and notably low customer attrition rates.

Under the stewardship of Cube Infrastructure Managers, firstcolo experienced substantial growth and was strategically positioned for its next developmental phase. A key element of this expansion is the ongoing construction of FRA7, a new 24 MW greenfield data center located in Rosbach, within the greater Frankfurt metropolitan area. Crucially, the site, power infrastructure, necessary permits, and a fixed-price construction contract are already secured, mitigating significant development risks. Furthermore, firstcolo has established a partnership with a regional utility to repurpose waste heat from the facility for local district heating, underscoring a commitment to sustainable operations.

With the financial backing and strategic expertise of CVC DIF, firstcolo is set to complete the FRA7 project and pursue the development of additional high-performance data center sites across Frankfurt and other key German markets. The ambition is to solidify its position as a leading colocation provider in Germany, a market experiencing intense demand driven by cloud adoption, digital transformation, and the burgeoning AI sector. The German data center market is projected to grow significantly in the coming years, fueled by these trends.

Willem Jansonius, a managing partner at CVC DIF and co-head of its Value Add strategy, highlighted the unique investment opportunity. He described firstcolo as a high-quality, founder-led platform that combines a stable, cash-generating existing business with a substantially de-risked expansion project. Stefan Moosmann, head of CVC DIF’s DACH region, emphasized that the deal was sourced through the firm's local Frankfurt network, reflecting their localized investment approach.

The existing management team, including co-founders Jerome Evans (CEO) and Nicolaj Kamensek (COO), along with CFO Dennis Bergfeld, will continue to lead firstcolo. Jerome Evans stated that FRA7 represents the foundational element of a scalable infrastructure designed to support next-generation AI, cloud, and enterprise workloads within Germany, a critical development for the nation's digital future.