- Centersquare, a private data center operator tied to Brookfield, acquired 10 data centers across the US and Canada, self-funding the deal.
- The purchase adds 71 MW in Canada and 26 MW in the US, expanding its total portfolio to 80 facilities and over 400 MW of capacity.
- The company is positioning itself to meet surging demand from AI, machine learning, and data-heavy enterprise clients.
Big Buy In A Cautious Market
Although demand for newly built data centers has slowed, Dallas-based colocation firm Centersquare is taking a different approach, reports Bisnow. The company is making a $1B investment, betting on the long-term need for digital infrastructure. They announced the all-cash acquisition of 10 data centers across seven North American cities, boosting both its capacity and footprint.
A Portfolio Play
The acquisitions include two properties in Boston and Minneapolis where Centersquare had been operating under lease, now owned outright. The additional facilities are located in Dallas, Nashville, Raleigh, Tulsa, Toronto, and Montreal. Altogether, the new assets will add 97 megawatts of computing power. That includes 71 MW in Canada and 26 MW in the US.
With the latest purchases, Centersquare now owns 80 data centers spanning more than 3.5M SF across the US, Canada, and the UK.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Backed By Brookfield
Centersquare was formed in 2024 via the merger of Evoque and Cyxtera. The latter had filed for Chapter 11 bankruptcy in late 2023, and was subsequently acquired by Brookfield Infrastructure Partners for approximately $775M. Brookfield Asset Management still maintains a major stake and general partnership interest in BIP.
Brookfield Global Data Centers CEO Udhay Mathialagan emphasized the acquisition’s strategic value, citing the firm’s “strong cost-efficient operating platform” and predictable revenue streams.
Betting On AI Infrastructure
Centersquare focuses on colocation facilities—leased rack space for enterprise clients to house and operate their own hardware. The model is increasingly favored by sectors like finance, healthcare, and government that require control and scalability.
CEO Spencer Mullee said the latest expansion positions Centersquare to meet growing AI-related demand, including workloads tied to generative AI and advanced analytics.
Why It Matters
Even as data center development faces tepid demand from traditional investors, firms like Centersquare are doubling down. The company is backed by deep-pocketed infrastructure capital and guided by an AI-driven outlook. It is leveraging its scale to position itself as a stable, yet growth-oriented player in the evolving digital infrastructure landscape.
What’s Next
As AI adoption accelerates and data requirements surge, expect Centersquare and similarly backed players to keep acquiring strategically located assets. The company’s growth trajectory could set a benchmark for colocation operators navigating both macroeconomic headwinds and technological transformation.
