Data Economy News

CyrusOne raises $670 million offloading four Houston facilities

Raul Martynek - DataBank 16.9.jpg

CyrusOne has sold four of its data centres in the Houston, Texas, metro area to the DigitalBridge-owned DataBank for $670 million.

The facilities include 4201 Southwest Freeway, currently known as the CyrusOne Galleria, as well as West I, West II, and West III, all located on the Westway Park Blvd Campus. The Houston West Campus is also the metro’s primary interconnection point with more than 30 fibre networks, 3,500 cross connects and public cloud on-ramps from AWS and Google.

DataBank CEO Raul Martynek (pictured) said: “With our deep roots in Texas, it was a logical metro for us to expand into and allows us to bring our digital infrastructure and interconnection solutions to the fourth largest metro in the US With the addition of Houston, DataBank now covers 27 metro markets, a larger geographic footprint in the US than any other data centre operator.”

The four Houston facilities collectively add more than 300,000 square feet of raised-floor data centre capacity, and 42.5MW of critical IT load, as well as blue-chip customers from the area’s fast-growing healthcare, financial, energy, media, and software sectors. DataBank’s total portfolio will now feature more than 65 facilities and 2 million square feet of raised-floor data centre capacity.

The transaction – covered with a loan from TD Securities and CIT, a division of the Texas-based First Citizens Bank – is due to close later in this quarter.

As for CyrusOne, the data centre REIT was itself acquired by KKR and Global Infrastructure Partners  for $15 billion late last year – and only a week before the REIT confirmed it would add 63MW of critical power capacity to its Frankfurt portfolio with its fifth data centre in the city.

Confirming the divestment in Texas, CyrusOne said proceeds from the sale will be used to fund future development projects.

“We are excited to execute on our capital recycling initiative to fund our continued growth,” said David Ferdman, interim president and CEO, who was appointed following the departure Bruce Duncan.

“This divestiture further optimises our portfolio as we redeploy capital into accretive developments across core markets with diverse hyperscale and enterprise demand in the US and Europe. We are pleased to partner with the DataBank team on this important transaction for our respective companies."

DataBank – which acquired zColo and invested in EdgePresence – has been equally busy capturing new markets and clients, as Martynek told Capacity last year.

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