Enterprise-Class Data Center Provider DataBank Raises $185 Million

By Amit Chowdhry ● January 10, 2020
  • DataBank, a leading provider of enterprise-class data centers, announced it has raised $185 million in funding

DataBank — a leading provider of enterprise-class data centers, connectivity, and managed services — announced that Colony Capital has made a $185 million investment in the company through the purchase of secondary equity interests from existing investors Edgewater Funds and Allstate. Allstate is going to retain 50% of its interests and continue as a DataBank investor while Edgewater will fully exit from its position. And Nuveen will also continue as an important investor in DataBank, holding its original stake.

Currently, DataBank operates 20 data centers in 9 US markets, including Dallas, Minneapolis, Kansas City, Cleveland, Pittsburgh, Salt Lake City, Baltimore, Atlanta, and Indianapolis.

And DataBank’s customized technology solutions are designed to help customers effectively manage risk, improve their technology performance, and allow them to focus on their core business objectives.

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“We are truly appreciative of the support we have received from Edgewater over these last four years,” stated Raul K. Martynek, CEO of DataBank. “We look forward to having Colony Capital and its long-term investment vision behind DataBank as we continue to grow our platform.”

This transaction represents Colony Capital’s inaugural direct balance sheet investment in digital real estate and its first step in investing in the edge/colocation data center sector. And Edgewater’s board member will step down and be replaced by Justin Chang, Colony’s Global Head of Private Equity.

“We are thrilled to be partnering with DataBank, its management team and investor group, to continue building the premier edge/colocation data center platform in the United States,” added Chang. “We look forward to supporting the business with additional capital to fund potential add-on acquisitions and greenfield edge data center developments.”