H5 Data Centers, a prominent U.S. data center operator, has partnered with Novacap, a leading Canadian private equity firm, to form a joint venture aimed at expanding data center capacity across North America. This collaboration focuses on developing and repositioning strategically located facilities to cater to the growing demand for scalable colocation services.
No Specific Project Details Revealed
While the announcement highlights the companies’ intent to develop new facilities, no concrete details on upcoming projects have been disclosed. The joint venture is set to prioritize the creation of data centers in key markets, yet specifics regarding locations and timelines remain under wraps.
H5 Data Centers’ Current Footprint
H5 Data Centers operates over 4 million square feet (approximately 371,610 square meters) of data center space across 20 U.S. markets. This extensive footprint positions the company as a leader in the data center sector, providing essential services for clients with large IT infrastructure needs.
Novacap’s Role in the Digital Infrastructure Space
Founded in 1981, Novacap has amassed over C$10 billion (approximately US$7 billion) in assets under management. This partnership with H5 Data Centers marks Novacap’s fourth investment within its Digital Infrastructure platform, reflecting the firm’s strategy to diversify its portfolio in the rapidly evolving digital space. Novacap’s other digital infrastructure investments include companies in broadband, IT consulting, and communications towers.
Executive Insights on the Joint Venture
Josh Simms, CEO of H5 Data Centers, emphasized the critical role that scalable data center solutions play in supporting customers’ expanding IT infrastructure needs. He stated, “Data center projects continue to rapidly grow in scale, and we look forward to partnering with Novacap to deliver incredible data centers to support our customers’ significant IT infrastructure needs.”
Ted Mocarski, senior partner and head of digital infrastructure at Novacap, shared similar enthusiasm for the partnership. “As we reach a critical juncture for power and compute, we are excited to partner with the H5 team to bring critical capacity online in key markets across the country,” he said.
Legal Advisory for the Deal
Legal advisors from two prestigious law firms facilitated the deal. Choate, Hall & Stewart LLP provided legal counsel to Novacap, while Hogan Lovells LLP advised H5 Data Centers.
FAQ Section
1. What is the focus of the joint venture between H5 Data Centers and Novacap?
The joint venture focuses on developing and repositioning data center facilities across North America to meet the increasing demand for scalable colocation services.
2. How much space does H5 Data Centers currently operate?
H5 Data Centers currently operates over 4 million square feet of data center space in 20 U.S. markets.
3. What other investments has Novacap made in the digital infrastructure sector?
Novacap’s digital infrastructure investments include broadband company All West Communications, IT consultancy Cofomo, Communications Tower Group, and Stratus Networks.
4. Are there any specific project details available for the joint venture?
No specific details on upcoming projects have been shared at this time. The partnership is still in its early stages, and more information may be disclosed later.
5. What role does scalable colocation space play in the data center industry?
Scalable colocation space is essential for supporting the growing IT infrastructure needs of businesses, providing flexible and secure environments for data storage and processing.
