Edge Data Center Pioneer EdgeConneX Acquired By EQT

As investment firms aggressively pursue data center edge and hyperscaler providers, EQT Infrastructure is buying EdgeConneX in a deal reported to be worth between $2.5 billion and $3 billion.


As more and more investors take notice of the growing importance of the edge, data center edge pioneer EdgeConneX is being acquired by global investment firm EQT Infrastructure in a deal reported to be worth between $2.5 billion and $3 billion.

The Herndon, Va.-based edge and hyperscale data center specialist , which made CRN’s 10 Hottest Edge Computing Startups Of 2020, said EQT will bring financial resources to EdgeConneX to expand its footprint across the globe.

“EQT brings significant financial resources and digital infrastructure industry experience which EdgeConneX will use to accelerate growth and invest in new data centers around the world,” said EdgeConneX CEO Randy Brouckman in a statement.

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The data center industry is changing rapidly as private equity and investment firms are taking over the market as hyperscalers like Amazon Web Services, Google and Microsoft are spending billions each year on equipping massive data centers to meet the surging demand around cloud services and data. As data center market consolidation continues, investors are looking at the edge as one of the next big waves.

EdgeConneX provides purpose-built data center offerings for the edge including small cells, points of presence and customized centers in remote locations. The company has built more than 40 edge computing data centers across the world since 2013, ranging from 10kW to 100MW facilities. EdgeConneX operates in 33 markets including Boston; Portland, Ore.; Toronto; Buenos Aires, Argentina; Dublin; and Warsaw, Poland.

The company builds and operates data centers for cloud, content, network and other service providers that require large custom-built facilities as well as edge facilities located closer to customers and end users. Its EdgeConneX multi-access edge computing infrastructure is used to test 5G networks and power virtual reality platforms, while its EdgeOS is a purpose-built operating system for edge data centers.

EdgeConneX developed its first purpose-built edge data center in Houston in 2013 and works with some of the largest hyperscalers in the world.

The data center colocation market reached $9.5 billion in the first quarter of 2020, up 7 percent year over year, as hyperscalers like Amazon Web Services, Apple, Facebook, Google and Microsoft spend billions to expand their global networks. Total hyperscale Capex spending on data centers reached a record high of over $120 billion in 2019, peaking with a record-breaking fourth quarter of over $32 billion.

Hyperscale operators are rapidly expanding their data center footprint by putting edge facilities ever closer to major business centers, with COVID-19 having very little impact on this trend. “This market has remained mostly unaffected by COVID-19,” said John Dinsdale, a chief analyst at Synergy Research Group.

According to a report from Barron’s, EdgeConneX is being sold to EQT for between $2.5 billion and $3 billion. EQT is acquiring EdgeConneX from an investor group led by Providence Equity Partners.

The deal is expected to close in the fourth quarter of 2020. After the transaction is complete, EQT will own an 85 percent stake in EdgeConneX.

Brouckman will continue to lead the company after the deal is complete. “I look forward to continuing to lead EdgeConneX and we are very pleased to have EQT as our new owner and partner in this exciting growth phase. On behalf of EdgeConneX, I thank our outstanding customers and partners, dedicated employees and long-term shareholders that gave us the latitude to succeed and create lasting value,” he said.