US investment firm increases stake in TierPoint data centres
Written by Nicole Cappella Fri 19 Jul 2024
US investment firm, Argo Infrastructure Partners, has announced an increased investment in TierPoint. With a total investment of £1.7 billion ($2.3 billion), Argo has become the majority stakeholder in the data centre provider.
Jason Zibarras, founding partner of Argo, highlighted TierPoint’s robust contractual revenue profile and environmental stewardship, expressing optimism about the long-term growth potential of the partnership.
“We are pleased to expand our investment in TierPoint … reaffirming our commitment as a dedicated, long-term investor in this exceptional platform,” said Zibarras.
Founded in 2010, TierPoint manages around 40 data centres in 18 markets across the US, mainly in secondary cities. The company has grown through a combination of new builds and acquisitions, and it offers a range of enterprise-level solutions to various clients.
In a recent interview, Senior Director of Argo, Jason Zibarras, and Founding Partners of Argo Infrastructure Partners, Brice Soucy, discussed the strategic importance of TierPoint in the current market. Zibarras emphasised the critical role of data centres in the digital economy and highlighted macro trends driving demand for data centre services, including the AI boom.
“We see these trends materially contributing to growth for enterprise-class data centres by enabling enterprise clients to provide, store, and traverse critical data in the medium term … the AI gold rush is overtaking available processing power, further driving the need for more data centres,” said Zibarras.
TierPoint’s focus on reducing the environmental impact of its facilities also aligns with Argo’s sustainability strategy. The company’s focus on modern, efficient cooling technologies and rack design has enabled significant energy savings and sustainability for its users.
Looking ahead, Argo plans to support TierPoint in expanding its data centre footprint. With unprecedented demand in TierPoint’s existing markets, Argo anticipates significant opportunities associated with expanding existing facilities to meet user needs. This strategic expansion aligns with the broader market forecast of 10% annual growth for colocation services through 2030.
Written by Nicole Cappella Fri 19 Jul 2024