EQT Infrastructure Acquires EdgeConneX Data Centers

EQT Infrastructure has finalized an agreement to acquire EdgeConneX, a prominent global player in the data center sector. This strategic move by the infrastructure investment arm of EQT signals a significant expansion into the rapidly growing hyperscale and edge computing markets. The transaction sees EdgeConneX transition from an investor group led by Providence Equity Partners to new ownership under EQT Infrastructure IV.

EdgeConneX operates a substantial network of over 40 facilities spread across 33 distinct markets in North America, Europe, and South America. The company specializes in developing and managing data centers tailored for cloud providers, content distributors, network operators, and other service providers. Their offerings range from large-scale, purpose-built hyperscale facilities to strategically located edge data centers designed to minimize latency for consumer and enterprise applications.

The acquisition is set to accelerate EdgeConneX's growth trajectory. EQT Infrastructure plans to actively support the company's expansion into new geographical territories and enhance its existing operational footprint. This aligns with the increasing demand for digital infrastructure, driven by advancements in artificial intelligence, 5G deployment, autonomous vehicles, virtual reality, cloud gaming, and the Internet of Things. These trends are collectively fueling a substantial increase in data generation and processing needs worldwide.

Jan Vesely, a Partner at EQT Partners, expressed strong confidence in the acquisition, noting EQT's long-standing observation of EdgeConneX's development and its impressive rise within the data center industry. He highlighted the management team's success in building a critical component of global cloud infrastructure and emphasized EQT's extensive experience in this sector and relevant geographies. EQT anticipates a collaborative effort to drive further business expansion and identify new growth avenues.

Randy Brouckman, CEO of EdgeConneX, welcomed EQT as the new owner, citing the significant financial resources and deep industry expertise they bring. He anticipates these assets will be instrumental in accelerating growth and funding new data center developments globally. Brouckman also extended gratitude to customers, partners, employees, and previous shareholders for their contributions to the company's success.

The deal, which is subject to standard closing conditions, is anticipated to conclude in the fourth quarter of 2020. Upon completion, the EQT Infrastructure IV fund is expected to be between 80% and 85% invested. This transaction underscores the robust investor appetite for digital infrastructure assets, a sector experiencing sustained demand due to the ongoing digital transformation across industries.