Vantage Data Centers’ $3.5 Billion Partnership with Colony Capital

Jones Day advised Vantage Data Centers on the partnership agreement. Paul Hastings LLP advised Colony Capital on the investment, as part of the agreement.

Vantage Data Centers, a leading global provider of hyperscale data center campuses, and an investor group led by Colony Capital, Inc. (NYSE: CLNY), a leading global investment management firm, announced they have entered into a definitive agreement to form a strategic partnership valued at $3.5 billion to accelerate the expansion of Vantage’s best-in-class, wholesale data centers throughout North America and Europe.

As part of the agreement, the Colony-led investor group will invest $1.2 billion in Vantage’s diversified portfolio, including 12 stabilized North American data centers, which span more than 1.4 million gross square feet and 150MW of IT capacity across key strategic markets in Santa Clara, California; Quincy, Washington; Montreal and Quebec City, Canada. Vantage’s management team, led by Sureel Choksi, president and CEO, will continue to manage and operate these assets as part of its global data center footprint. Vantage will maintain the same level of superior service to its valued customers in each market, while simultaneously developing and operating additional data centers throughout North America and Europe. The capital provided by this transaction will support Vantage’s strategy to expand and enhance its global footprint.

The strategic partnership also marks a significant milestone in Colony’s ongoing digital transformation, with $200 million of the investment coming from Colony’s balance sheet, underscoring its commitment to investing in and acquiring world-class, stabilized digital infrastructure assets that deliver consistent returns for Colony shareholders.

The partnership is expected to be finalized in late July. Citi served as financial advisor to Vantage Data Centers.

Colony Capital, Inc. (NYSE: CLNY) is a leading global investment firm with a heritage of identifying and capitalizing on key secular trends in real estate. The company manages a $50 billion portfolio of real assets on behalf of its shareholders and limited partners, including over $20 billion in digital real estate investments through Digital Colony, its digital infrastructure platform.

Vantage Data Centers powers, cools, protects and connects the technology of the world’s well-known hyperscalers, cloud providers and large enterprises.

The Jones Day team was led by Ismai Alsheik (Picture) and Peter Bergan.

The Paul Hastings team advising on the  investment in Vantage Data Centers was led by David Hernand and included John Simonis, Tom Wisialowski, Steve Harris,  William DeGrandis, Ron Ben-Yehuda and Stan Kalminsky, Vivian Tsai, Dan Hagedorn, Ryan Samii, M’Alyssa Mecenas and Jenna McGrath.

Involved fees earner: Ismail Alsheik – Jones Day; Peter Bergan – Jones Day; Ron Ben-Yehuda – Paul Hastings; William DeGrandis – Paul Hastings; Daniel Hagedorn – Paul Hastings; Stephen Harris – Paul Hastings; David Hernand – Paul Hastings; Stan Kalminsky – Paul Hastings; Jenna McGrath – Paul Hastings; M’Alyssa Mecenas – Paul Hastings; Ryan Samii – Paul Hastings; John Simonis – Paul Hastings; Vivian Tsai – Paul Hastings; Thomas Wisialowski – Paul Hastings;

Law Firms: Jones Day; Paul Hastings;

Clients: Colony Capital Inc.; Vantage Data Centers LLC;

Author: Ambrogio Visconti