CyrusOne today announced its Q4 and full-year 2021 earnings and provided updates on its record U.S. data center leasing activity driven by hyperscale customer Facebook (Meta), as well as its development pipeline, take-private by KKR and GIP, and asset sale in Houston, Texas to DataBank.

Financial Performance in Q4 2021 – CyrusOne

In Q4 2021, CyrusOne reported revenue of $318m, a 4.7% increase quarter-over-quarter, and adjusted EBITDA of $148m, a 0.5% decrease quarter-over-quarter. Therefore, the company’s EBITDA margin was 46.6% in Q4 2021, a ~2.5% decline quarter-over-quarter.

Full-Year 2021

For full-year 2021, CyrusOne reported total revenue of $1.21bn, a 16.7% increase year-over-year, and adjusted EBITDA of $580m, an 8.0% increase year-over-year. Therefore, CyrusOne’s EBITDA margin was 48.1% in full-year 2021, a 3.9% decline year-over-year.

Operational Performance in Q4 2021 – CyrusOne

CyrusOne operates 56 data centers, representing 984 megawatts of power capacity across 5.09 million sqft of colocation space.

New Leases

In Q4 2021, CyrusOne’s new data center lease signings were $104.3m (annual revenue), up 175%+ from the $37.8m of signings during Q3 2021. In total, the new lease signings represented 101 megawatts of power capacity and 530k colocation sqft.

CyrusOne’s new leasing demand was driven primarily by hyperscale customers across the company’s U.S. markets. For example, CyrusOne signed three significant leasing deals with Facebook (Meta) in the following metros:

  • Chicago, Illinois: 36 megawatts with Facebook (Meta)
  • Houston, Texas: 36 megawatts with Facebook (Meta)
  • Phoenix, Arizona: 36 megawatts with Facebook (Meta)

Overall, new lease rates were $86.0 per kilowatt, representing a 46% decrease from $159 per kilowatt in the prior quarter. This was primarily driven by CyrusOne’s leasing composition being predominantly, larger and more price-sensitive, hyperscale deals.

Additionally, the weighted-average lease term of CyrusOne’s new lease signings was 6.9 years. Indeed, this compares to the weighted average remaining lease term of the company’s portfolio of 4.3 years.


At the end of Q4 2021, CyrusOne’s backlog (i.e., signed but not commenced leases) reached $177m of annualized revenue. Notably, this represents a 67% increase from the company’s backlog of $106m at the end of Q3 2021.


CyrusOne’s recurring rent quarterly churn remained low in Q4 2021 at 0.3%, as compared to 0.5% in Q3 2021.


As of Q4 2021, CyrusOne’s data center portfolio utilization was 86% for stabilized properties and 83% overall.

Development Pipeline

CyrusOne has development projects underway in 7 markets including London, Chicago, Houston, Frankfurt, Phoenix, Northern Virginia (Sterling), and San Antonio.

MarketCapEx*Critical LoadColocationPowered Shell
London$173m22.5 MW90k sqft118k sqft
Chicago$150m42 MW165k sqft
Houston$135m42 MW126k sqft
Frankfurt$131m17 MW73k sqft
Phoenix$92m25.5 MW82k sqft
Northern Virginia$45m225k sqft
San Antonio$23m125k sqft
Total$748m149 MW536k sqft469k sqft
*CapEx = average of total development costs range.

In aggregate, this development pipeline comprises ~$750m of investment, adding 149 megawatts of power capacity and 536k colocation sqft plus 469k sqft of powered shell to CyrusOne’s portfolio.

Construction Completed – Q4 2021

As part of its Q4 2021 earnings release, CyrusOne disclosed that it had completed construction on 9 megawatts of power capacity across 48k colocation sqft in the markets of Northern Virginia and London.

Take-Private of CyrusOne by KKR and GIP

In November 2021, CyrusOne agreed to be acquired through a merger with entities of private equity firms KKR and Global Infrastructure Partners (GIP), in a transaction which valued CyrusOne’s common stock at $90.50 per share, equivalent to an enterprise value of $15bn.

Subsequently, in February 2022, CyrusOne’s shareholders approved the merger, which is currently expected to close in Q2 2022. However, prior to the KKR and GIP merger closing, CyrusOne has a pending asset sale which is anticipated to close in Q1 2022 (see below).

Asset Sale Prior to Completion of KKR and GIP Take-Private

In January 2022, CyrusOne agreed to sell four existing data centers in the Houston, Texas metro area for total consideration of $670m, to DataBank Holdings, a retail colocation provider, which is 20%-owned by the balance sheet of DigitalBridge (NYSE: DBRG). Specifically, DataBank is acquiring CyrusOne’s Houston West I, II, & III, and Houston Galleria data centers.

Additionally, CyrusOne will lease back from DataBank, Houston West III’s powered shell to support its leasing deal signed in Q4 2021 with Facebook (Meta).

Mary Zhang covers Data Centers for Dgtl Infra, including Equinix (NASDAQ: EQIX), Digital Realty (NYSE: DLR), CyrusOne, CoreSite Realty, QTS Realty, Switch Inc, Iron Mountain (NYSE: IRM), Cyxtera (NASDAQ: CYXT), and many more. Within Data Centers, Mary focuses on the sub-sectors of hyperscale, enterprise / colocation, cloud service providers, and edge computing. Mary has over 5 years of experience in research and writing for Data Centers.


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