U.S. fund managers Argo Infrastructure Partners and Wafra led the US$320-million equity investment, along with Australian investment firm Macquarie Group. TierPoint will use the capital to repay some outstanding credit and to expand. The St. Louis-based firm has more than 40 facilities and also provides security and disaster-recovery technology services. (Bloomberg)
Talking point: TierPoint’s raise is in the middle of the US$250-million to US$500-million range it was reportedly looking for last year, with plans to expand in smaller states like Nebraska, Missouri, Oklahoma and Kansas. OTPP and RedBird Capital Partners—another existing investor that participated in this round—have backed at least one other data-centre firm together. Dallas-headquartered Compass Datacenters is using their capital and investment from Montreal’s billionaire Azrieli family to fund expansions, including in Canada. Internet infrastructure is a fast-growing market in both big and small cities, as video streaming, business software and banks increasingly run off cloud services. It’s also relatively coronavirus-resistant, since online activity hasn’t slowed.