I Squared Capital announced a definitive Purchase and Sale Agreement to acquire ten data‑center facilities from Cogent Fiber for $225 million in cash. The assets will seed a new U.S. colocation and AI‑inference platform, with up to $1 billion earmarked for further development. The move targets enterprise customers that need high‑density, low‑latency infrastructure for AI inference workloads.
I Squared Capital Acquires Ten Data Center Assets
The acquisition includes approximately 53 MW of installed power capacity and about 259,000 sq ft of colocation space across nine U.S. markets: Chicago, Atlanta, Phoenix, Los Angeles, Kansas City, Baltimore, Houston, Nashville and Stockton. All facilities are purpose‑built, owned fee simple, and designed for expansion. I Squared will close the transaction in the third quarter of 2026, subject to customary regulatory approvals, including the Hart‑Scott‑Rodino waiting period.
Seed Portfolio Provides High‑Density, Liquid‑Cooled Capacity
The newly acquired sites are equipped for high‑density deployments, including liquid‑cooling‑enabled configurations. Their dense fiber connectivity and proximity to local internet exchanges support a range of workloads, from retail and wholesale colocation to latency‑sensitive AI inference. I Squared plans to build a standalone operating platform around these assets, leveraging a seasoned management team from day one and committing up to $1 billion for targeted capital investment, customer‑led expansion, and additional acquisitions.
Implications for Enterprise AI Inference Buyers
Gautam Bhandari, Co‑Founder and Global Chief Investment Officer of I Squared, noted that “location, power, and connectivity are the three variables that determine a data center's long‑term value.” He added that as AI shifts from training to inference, demand for high‑density, low‑latency facilities is expected to grow. For enterprises seeking to run inference models at scale, the platform’s combination of owned real estate, high‑density power infrastructure, and multi‑carrier interconnection could reduce the need to source multiple third‑party sites.
Key Takeaways
- I Squared Capital will acquire ten Cogent Fiber data‑center facilities for $225 million in cash.
- The seed portfolio offers roughly 53 MW of power and 259,000 sq ft of space across nine U.S. markets, all built for high‑density, liquid‑cooled deployments.
- I Squared has committed up to $1 billion to develop the platform, with closing expected in Q3 2026 pending regulatory approval.
TechInsyte's Take
The acquisition gives I Squared a foothold in markets where data‑center supply is tight, positioning the firm to address growing enterprise demand for AI inference capacity. However, the platform’s success will depend on securing anchor customers and executing the planned capital rollout on schedule. CIOs and CTOs should monitor I Squared’s progress in converting the seed assets into a fully operational, high‑density AI inference offering.
Source: Businesswire
