The EQT Infrastructure VI fund (EQT Infrastructure) has announced a strategic partnership with EdgeConneX, a key player in the data center industry. The goal of this partnership is to build and operate cutting-edge, custom data centers that meet the demands of hyperscale customers all around the globe. The initiative would mark a substantial expansion into new markets for both entities.
With the goal of providing reliable data center solutions, EdgeConneX has been receiving financial support from EQT Infrastructure IV and EQT Infrastructure V. Since EQT’s acquisition of the company in 2020, EdgeConneX has witnessed a remarkable growth trajectory, more than tripling its capacity. This expansion has not only strengthened its presence in existing markets but also propelled it into new territories, including Asia, Latin America, and additional European regions. Presently, the company boasts a vast network, with over 80 data centers either operational or under development, spread across more than 50 markets in North America, Europe, the Asia-Pacific region, and South America.
Jan Vesely, a partner in EQT Infrastructure’s Advisory team, highlighted the significance of this collaboration. He emphasized EdgeConneX’s pioneering status in the data center domain and the extensive expertise and track record of its team. Vesely expressed confidence in the partnership’s ability to establish EdgeConneX as a dominant force in the global digital infrastructure sphere, buoyed by EQT Infrastructure’s global reach, industry acumen, and commitment to sustainable growth.
Cloud Adoption, Artificial Intelligence
This expansion would underscore the burgeoning demand in the data center industry, fueled by burgeoning trends like digitalization, widespread cloud adoption, and the increasing prominence of artificial intelligence (AI). Projections suggest that by 2030, the capacity required for AI-centric deployments is likely to triple, indicating a substantial growth potential for the sector. The investment by EQT Infrastructure VI, in partnership with EdgeConneX, is poised to address this need by adding hundreds of megawatts of data center capacity, vital for supporting hyperscale clients and the digital economies globally.
Randy Brouckman, CEO of EdgeConneX, reiterated the company’s client-focused approach. He emphasized the imperative of providing customers with the necessary capacity, in the desired configuration, at the right time and location. Mr. Brouckman pointed out the vital role of data centers in housing and connecting key technologies, businesses, and end-users, thereby enabling the growth of the world’s digital economies. He expressed enthusiasm about the new opportunities that the partnership with EQT Infrastructure would unveil, noting EdgeConneX‘s rapid expansion facilitated by EQT’s significant local presence in key markets worldwide.
This transaction is set to position EQT Infrastructure VI fund to be approximately 30-35% invested, a calculation that includes closed or signed investments, announced public offers, and potential syndications, in relation to the target fund size. This development represents a significant milestone in the data center industry, promising to enhance the digital infrastructure capacity to meet the evolving demands of the global digital economy.
