Flexential, a leading provider of data center solutions, is embarking on an ambitious new phase of growth, bolstered by significant financial backing. The company recently announced the closure of both a continuation vehicle and a strategic investment in Flexential from GI Partners’ GI Data Infrastructure division. Funds managed by Hamilton Lane further support the investment. This funding enhances Flexential’s capacity to deliver the scale and performance that its customers demand in the rapidly evolving digital landscape.
With this latest investment, combined with a previous round of funding from Morgan Stanley Infrastructure Partners secured last year, Flexential’s total primary equity raised now reaches approximately $1 billion. This financial commitment underscores the importance of long-term infrastructure projects that are poised to shape the next decade of digital business. It enables Flexential to adapt swiftly to market demands while maintaining a strategic focus on the multi-year planning required for constructing world-class facilities.
The U.S. data center market is experiencing significant shifts, particularly regarding power availability, which has emerged as a critical factor determining where and when additional capacity can be brought online. As lead times for utility commitments extend, vacancy rates in major markets have fallen to historic lows.
Concurrently, the demand driven by AI and high-density workloads is on the rise, tightening timelines for development. Flexential intends to leverage the new capital to accelerate growth in markets constrained by capacity, advance construction on over 110 megawatts of data center projects already in the pipeline, secure power commitments for future expansions, and scale the FlexAnywhere platform to meet escalating demands in AI and enterprise computing.
The FlexAnywhere platform is designed to address the current market challenges. By integrating colocation, cloud services, connectivity, and data protection across more than 40 data centers in 18 markets, Flexential offers its customers a unique blend of reach and flexibility for strategic deployment.
This capability is vital for tasks such as GPU-intensive AI model training, enabling ultra-low latency for critical applications, and integrating multi-cloud environments—all while delivering the performance and reliability that businesses rely upon.
The confidence demonstrated by GI Partners, Hamilton Lane, and Morgan Stanley Infrastructure Partners reflects a shared belief in Flexential’s strategic direction, operational execution, and the potential for its team to lead in the digital infrastructure landscape. With the resources, expertise, and determination necessary to drive innovation, Flexential is well-positioned to build the capacity, capability, and connectivity that will empower the next wave of digital transformation.
As Flexential moves forward, it aims to solidify its role as a key player in the digital infrastructure arena, developing projects that not only meet current demands but also anticipate future needs in an increasingly interconnected world.
As part of the deal, Mark Prybutok (Managing Director and Head of GI Data Infrastructure) has also been appointed to Flexential’s Board of Directors.
KEY QUOTES:
“This transaction validates our conviction in Flexential’s leadership position in the data center market. We are excited to continue our partnership with the Flexential team and look forward to supporting the company’s next phase of growth.”
Travis Pearson, Managing Director and Co-Head of Private Equity at GI Partners
“Flexential plays a critical role in the digital infrastructure ecosystem, supporting latency-sensitive enterprise, AI, and cloud workloads for a diverse base of blue-chip customers. We are excited to partner with the company and look forward to contributing to its future success.”
Mark Prybutok, Managing Director and Head of GI Data Infrastructure
“This transaction strengthens our ability to deliver long-term infrastructure projects and secures the capital needed to keep pace with surging demand for AI and enterprise computing. It was made possible by the confidence existing and new investors have in our strategy, and it further positions Flexential to meet the complex needs of organizations across the country.”
Chris Downie, CEO of Flexential
“This capital enables us to accelerate site acquisition, guarantee power commitments, and bring projects online more quickly. We’ll be able to expand in capacity-constrained markets and pursue new opportunities while we continue to deliver the scale, reliability, and interconnection capabilities our customers depend on.”
Ryan Mallory, President and COO of Flexential
