I Squared Capital announced it is launching a new U.S. AI inference and edge colocation data center platform backed by a commitment of up to $1 billion. The launch begins with a $225 million acquisition of ten data center facilities from Cogent Communications Holdings subsidiary Cogent Fiber.
The company said the acquisition will establish a standalone operating platform focused on colocation, high-density deployments, and AI inference infrastructure. The platform will initially consist of ten purpose-built data center facilities across nine U.S. markets, including Chicago, Atlanta, Phoenix, Los Angeles, Kansas City, Baltimore, Houston, Nashville, and Stockton.
According to the announcement, the seed portfolio includes approximately 53 megawatts of installed power capacity and around 259,000 square feet of available colocation space. I Squared Capital noted that all of the facilities are owned fee simple, have room for expansion, and are capable of supporting high-density and liquid-cooled deployments designed for AI inference workloads.
The company explained that the facilities combine owned real estate, existing high-density-enabled power infrastructure, and multi-carrier interconnection capabilities. The assets also feature dense fiber connectivity and proximity to local internet exchanges, positioning the platform to support retail colocation, wholesale colocation, content delivery, and latency-sensitive AI inference applications.
Gautam Bhandari, Co-Founder, Managing Partner and Global Chief Investment Officer at I Squared Capital, said the company believes the assets are strategically positioned in markets where supply constraints continue to increase the value of data center infrastructure.
Bhandari said the transition from AI model training to inference workloads is expected to drive demand for low-latency, high-density facilities closer to end users and businesses. He added that the transaction reflects I Squared Capital’s strategy of building infrastructure platforms through targeted acquisitions and operational investment.
The transaction is expected to close in the third quarter of 2026, subject to customary regulatory approvals, including the expiration of the applicable Hart-Scott-Rodino waiting period.
Founded in 2012, I Squared Capital manages approximately $60 billion in assets and invests across sectors including digital infrastructure, transportation, power and utilities, environmental infrastructure, and social infrastructure. The firm said its portfolio currently includes more than 100 companies operating across over 70 countries.
KEY QUOTES:
“Location, power, and connectivity are the three variables that determine a data center’s long-term value, and these facilities have all three in markets where new supply is severely constrained. As AI moves from the training phase, where models are built, to the inference phase, where they are used by people and businesses every day, demand for high-density, low-latency facilities like these will only grow.
This transaction is consistent with I Squared’s disciplined approach to building infrastructure platforms from the ground up by acquiring strategically located assets and investing the capital and operational expertise needed to unlock their full potential.”
Gautam Bhandari, Co-Founder, Managing Partner And Global Chief Investment Officer, I Squared Capital
