Vantage Data Centers signed a definitive agreement with InfraVia Capital Partners, along with the two founders of the business, to acquire Next Generation Data (NGD), which operates a data center campus located on 50-acres in the Cardiff Capital Region in South Wales, UK.
The existing NGD data center campus is a Tier III 180MW facility, including an existing 72MW capacity and 108MW of expansion capacity. It uses 100% renewable energy and is rich in fiber delivered by many Tier 1 service providers. Latency between Wales and London is less than 1.5 milliseconds. In addition, NGD Cloud Gateway provides multiple access services, including Express Route and Connect, and NGD recently became a new hosting facility for LINX Wales. The highly secure site meets the U.K. government’s highest standards, and is one of many reasons that multiple blue-chip, high growth companies currently house their IT infrastructure within NGD’s 750,000 square foot facility.
Upon closing, Wales will mark Vantage’s sixth strategic market in Europe following its entrance into five markets (Berlin, Frankfurt, Milan, Warsaw and Zurich) announced in February 2020, including the acquisition of Etix Everywhere.
“As the needs of our hyperscale, cloud and large enterprise customers continue to grow, Wales represents a highly attractive U.K. market offering both lower cost and greater scalability versus London,” said Sureel Choksi, president and CEO, Vantage Data Centers. “NGD customers benefit from very low network latency to London, low power costs and excellent fiber connectivity, coupled with the company’s massively scalable campus outside London’s highly constrained M25 area. We are thrilled to welcome Justin Jenkins and the entire NGD team to Vantage Europe.”
“The NGD team is excited to join Vantage Europe given our shared commitment to operational excellence, high quality facilities and sustainable building practices,” said Jenkins. “Vantage’s global footprint and broad customer relationships, combined with NGD’s growing hyperscale and enterprise U.K. customer base, position us ideally to accelerate the investment and growth of our U.K. business.”
The transaction will be funded with equity commitments from Digital Colony Partners and other investors in Vantage, as well as acquisition debt financing.
Vantage Data Centers launch $2 billion European expansion strategy
Vantage Data Centers has launched a $2 billion expansion into Europe with the aim of establishing itself in the hyperscale market.
As part of its expansion strategy, Vantage has acquired Etix Everywhere, which has 50MW of built data center capacity across its footprint and is building a 55MW hyperscale data center campus in Frankfurt, Germany. Financial terms were not disclosed. In conjunction with the Etix acquisition, Antoine Boniface, former CEO of Etix, has joined the Vantage executive team to serve as president, Europe.
In addition, Vantage Europe has secured land and is planning to develop hyperscale data center campuses in Berlin, Milan, Warsaw and Zurich. The facilities, which are currently underway, are in the following European markets:
- Berlin: 64MW campus on 13 acres (5 hectares)
- Milan: 32MW campus on 17 acres (7 hectares)
- Warsaw: 64MW campus 12 acres (5 hectares)
- Zurich: 40MW campus on 7 acres (3 hectares)
Vantage said intends to invest USD $2 billion in its planned European expansion, including more than USD $800 million in new equity capital provided by Vantage’s current investors and a new commitment from Digital Colony Partners.
“As data center demand from our customer base continues to rapidly increase worldwide, Vantage is embarking upon its largest expansion ever into Europe through the development of five strategic markets,” said Sureel Choksi, president and CEO of Vantage. “The acquisition of Etix accelerates our expansion to Frankfurt, Europe’s highest growth hyperscale market. We are very excited to welcome Antoine and his team to lead our European business.”
Inclusive of this European expansion, Vantage will operate hyperscale data center campuses in 11 markets globally.
