Vantage Data Centers today announced that capital raises during 2020, allowed the company to double its size, in terms of markets served, and increase its hyperscale campus IT capacity by more than 90%. Indeed, the company, in 2020 entered into the European market and expanded throughout its North American footprint.
European Expansion – Vantage Data Centers
Vantage Data Centers made investments of $2bn in Europe in Q1 2020. Specifically, these included the acquisitions of Etix Everywhere and greenfield developments in Frankfurt, Berlin, Milan, Warsaw, and Zurich.
Furthermore, in Q3 2020, Vantage Data Centers acquired UK-based Next Generation Data from InfraVia Capital Partners for ~£600m (~$750m). At the time, Next Generation Data was projected to generate £29m ($37m) of EBITDA, equating to a 20.5x EBITDA multiple.
Since closing these transactions, Vantage has reached major milestones such as the opening of its flagship, Continental Europe campus, in Frankfurt, Germany. Additionally, the company completed a concrete shell with 8 megawatts of IT capacity at its Zurich campus. Indeed, this Zurich campus is Vantage’s first greenfield European data center which is scheduled to be delivered in Q3 2020.
North American Expansion – Vantage Data Centers
In 2020, Vantage accelerated its ongoing investment and expansion in the world’s two largest data center markets. With the substantial increase in customer demand for hyperscale capacity, Vantage proactively began construction on additional facilities on its growing Northern Virginia campus and its second Santa Clara (Silicon Valley) campus. Indeed, expansions in Northern Virginia and Santa Clara follow strong leasing demand for Vantage’s facilities in these markets, during 2020:
- Northern Virginia: Vantage signed an 8 megawatt lease with TikTok owner ByteDance
- Northern Virginia: Vantage signed a 5 megawatt lease with Oracle
- Santa Clara: Vantage signed a 12 megawatt lease with Microsoft
In addition to the company’s growth in the United States, Vantage acquired Hypertec’s hyperscale data center business in Montreal. Indeed, this Q4 2020 transaction was Vantage’s third acquisition of 2020. In turn, Hypertec enabled Vantage Data Centers to expand its total footprint in the Province of Quebec to 81 megawatts of IT capacity, across three campuses.
Capital Raise Fuels Growth
In 2020, Vantage raised $3.6bn to meet market demand and provide customers with state-of-the-art data center facilities. In addition, in July 2020, Vantage Data Centers (North America) formed a strategic partnership, with an investor group led by Colony Capital. This transaction was valued at $3.5bn, equivalent to a 5.1% cap rate.
Backed by this capital infusion, Vantage Data Centers has doubled in size, becoming one of the fastest growing data center providers globally. Indeed, Vantage Data Centers now has access to scalable capital, the support of additional investors and a growing team. In turn, Vantage Data Centers can support increased demand from hyperscalers, cloud service providers and large enterprise customers globally.
Once fully developed, Vantage Data Centers’ current and planned campuses will comprise more than 1 gigawatt (GW) of operational capacity, across 7+ million sqft. Specifically, Vantage Data Centers (North America) owns 13 operating hyperscale campuses and has 4 which are currently under development. Whereas Vantage Europe owns 1 operating hyperscale campus and has 6 which are currently under development.
