Vantage Data Centers Completes $9.2 Billion Equity Investment Led by DigitalBridge and Silver Lake

Rhea-AI Summary

Vantage Data Centers has completed a $9.2 billion equity investment led by DigitalBridge Group (NYSE: DBRG) and Silver Lake, significantly increasing its capital raise by $2.8 billion. This investment is part of a total of $11 billion raised in the past nine months, aimed at driving $30 billion in data center development.

The funds will be used to support Vantage's growth across North America and EMEA, focusing on meeting the rising demand for cloud and AI capabilities. Vantage currently operates 34 hyperscale data centers globally and plans to expand further with energy-efficient and sustainable designs.

This significant funding underscores investor confidence in Vantage's ability to meet market demands and solidifies its position as a key player in the data center and digital infrastructure sector.

Positive

• Vantage Data Centers completed a $9.2 billion equity investment.
• Investment led by DigitalBridge Group (NYSE: DBRG) and Silver Lake.
• Capital raise increased by $2.8 billion due to strong investor demand.
• Total of $11 billion raised in the past nine months.
• New funding aimed at driving $30 billion in data center development.
• Plans to expand with energy-efficient and sustainable data center designs.
• Vantage operates 34 hyperscale data centers worldwide.
• Strong investor confidence in Vantage's market position and growth potential.

Negative

• No immediate negative financial or business aspects explicitly stated in the press release.

Insights

Financial Analyst

The completion of a $9.2 billion equity investment led by DigitalBridge and Silver Lake is a significant milestone for Vantage Data Centers. This financial injection, which includes a $2.8 billion upsize, highlights strong investor confidence and the substantial market demand for data centers. For retail investors, it’s noteworthy that this investment will drive extensive development, expecting to fund around $30 billion in projects. This positions Vantage strongly in the hyperscale data center market, catering to the rapidly growing needs of cloud and AI technologies. The sizable investment and the oversubscription indicate a robust growth potential and a favorable outlook for Vantage in the near and long term. However, investors should monitor how effectively Vantage can leverage these funds to achieve operational efficiency and maintain a competitive edge in a market that's becoming increasingly crowded.

Market Research Analyst

This investment speaks volumes about the strategic importance of data center infrastructure in the digital economy, particularly for global hyperscalers. Vantage's expansion in North America and EMEA, driven by this capital raise, is aimed at meeting the unprecedented demand for data management and AI deployments. Retail investors should recognize the potential for Vantage to tap into the growing market segments of cloud computing and AI, where demand outstrips the current supply of appropriate infrastructure. The focus on energy-efficient and sustainable designs also aligns with global trends toward greener technologies, potentially offering additional competitive advantages in attracting eco-conscious clients.

Reflects $2.8 billion upsize in capital raise to support global hyperscalers in meeting unprecedented cloud and AI demand

Total of $11 billion raised over past nine months to drive $30 billion in data center development

DENVER, & BOCA RATON, Fla., & MENLO PARK, Calif.--(BUSINESS WIRE)-- Vantage Data Centers, a leading global provider of hyperscale data center campuses, has completed a $9.2 billion equity investment led by investment vehicles managed by DigitalBridge Group, Inc. (NYSE: DBRG) (“DigitalBridge”), the leading global alternative asset manager dedicated to investing in digital infrastructure, and Silver Lake, the global leader in technology investing.

Vantage Data Centers’ portfolio includes 34 operational or developing hyperscale data center campuses across five continents. Pictured is a data center on the company’s Phoenix, Arizona campus. (Photo: Business Wire)

The capital raise was significantly oversubscribed and upsized by $2.8 billion with participation from multiple global investors, bringing the completed investment to $9.2 billion. Together with the €1.5 billion investment by Australian Super announced in September 2023, aggregate new investment in Vantage over the past nine months totals approximately $11 billion, of which more than $7 billion is primary equity. Primary proceeds will be used to fund Vantage’s growth across North America and EMEA, accelerating and extending the company’s strategic capabilities to partner with global hyperscalers in meeting unprecedented cloud and AI demand.

Vantage has grown in recent years to own or control more than 25 sites in North America and EMEA totaling over three gigawatts of expected capacity. As part of the company’s investment plan, the new funding is expected to accelerate further growth by driving an estimated $30 billion of additional development, extending Vantage's track record of bringing market leading capacity and innovative solutions to customers around the world. In connection with the investment, Vantage will continue its development of next-generation data centers, including energy-efficient and sustainable designs purpose-built for AI and large-scale cloud deployments.

“It’s exciting to experience such strong investor demand to fuel our unprecedented growth across North America and EMEA,” said Sureel Choksi, president and CEO of Vantage. “The confidence that DigitalBridge, Silver Lake and other investors have in Vantage and our ability to execute, as evidenced by an investment round that was significantly oversubscribed, is a testament to our team’s track record of delivering for our customers. This new funding from the world’s leading digital infrastructure and technology investors, along with numerous co-investors, is a game changer that uniquely positions Vantage to capitalize on the incredible AI and cloud opportunity in front of us.”

“DigitalBridge is excited to continue its support of Vantage, a proven infrastructure partner for the world’s top cloud and technology platforms,” said Jon Mauck, senior managing director at DigitalBridge, who leads the company’s data center investment strategy. “This investment allows Vantage to further accelerate the development of next generation infrastructure to support the continued adoption of cloud and AI technologies.”

“Our conviction in Vantage’s leadership in developing and delivering next generation capacity for the world’s most significant hyperscalers has never been greater, and we are thrilled to be joined by an elite group of investors in this important partnership,” said Greg Mondre, co-CEO and managing partner, and Lee Wittlinger, managing director, of Silver Lake.

About Vantage Data Centers

Vantage Data Centers powers, cools, protects and connects the technology of the world’s well-known hyperscalers, cloud providers and large enterprises. Developing and operating across five continents in North America, EMEA and Asia Pacific, Vantage has evolved data center design in innovative ways to deliver dramatic gains in reliability, efficiency and sustainability in flexible environments that can scale as quickly as the market demands.

For more information, visit https://www.vantage-dc.com.

About DigitalBridge Group, Inc.

DigitalBridge Group, Inc. (NYSE: DBRG) is a leading global alternative asset manager dedicated to investing in digital infrastructure. With a heritage of over 25 years investing in and operating businesses across the digital ecosystem, including cell towers, data centers, fiber, small cells and edge infrastructure, the DigitalBridge team manages $80 billion of infrastructure assets on behalf of its limited partners and shareholders. Headquartered in Boca Raton, DigitalBridge has key offices in New York, Los Angeles, London, Luxembourg and Singapore.

For more information, visit https://www.digitalbridge.com.

About Silver Lake

Silver Lake is a global technology investment firm with approximately $103 billion in combined assets under management and committed capital and a team of professionals based in North America, Europe and Asia. Silver Lake’s portfolio companies collectively generate nearly $248 billion of revenue annually and employ approximately 506,000 people globally.

For more information, visit https://www.silverlake.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that might cause such a difference include the impact of AI and related technologies on the demand for and development of digital infrastructure, plans for capital deployment by Vantage, and other risks and uncertainties, including those detailed in DigitalBridge’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and its other reports filed from time to time with the U.S. Securities and Exchange Commission. All forward-looking statements reflect DigitalBridge’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. DigitalBridge cautions investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. DigitalBridge is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and DigitalBridge does not intend to do so.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240613361394/en/

Mark Freeman

Vantage Data Centers

mfreeman@vantage-dc.com

+1-202-680-4243



Robin Bectel

REQ for Vantage Data Centers

vdc@req.co

+1-703-244-2242



Jon Keehner / Sarah Salky

Joele Frank, Wilkinson Brimmer Katcher for DigitalBridge

dbrg-jf@joelefrank.com

+1-212-355-4449



Jennifer Stroud

Edelman Smithfield for Silver Lake

jennifer.stroud@edelmansmithfield.com

+1-646-565-1792

Source: Vantage Data Centers

FAQ

What is the recent investment completed by Vantage Data Centers?

Vantage Data Centers completed a $9.2 billion equity investment led by DigitalBridge and Silver Lake.

What companies led the $9.2 billion investment in Vantage Data Centers?

The investment was led by DigitalBridge Group (NYSE: DBRG) and Silver Lake.

How much capital has Vantage Data Centers raised in the past nine months?

Vantage Data Centers has raised a total of $11 billion in the past nine months.

What will the new funding be used for in Vantage Data Centers?

The new funding will be used to support Vantage's growth across North America and EMEA and to drive $30 billion in data center development.

What is the objective of Vantage Data Centers' new funding?

The objective is to accelerate growth, support global hyperscalers, and extend strategic capabilities to meet cloud and AI demand.

How many hyperscale data centers does Vantage operate?

Vantage operates 34 hyperscale data centers globally.

What are some features of the new data centers Vantage plans to develop?

The new data centers will include energy-efficient and sustainable designs, purpose-built for AI and large-scale cloud deployments.

What is the expected impact of the $9.2 billion investment on Vantage Data Centers?

The investment is expected to strengthen Vantage's position in the market, drive substantial growth, and support the development of next-generation data centers.