The facilities involved in the deal are the Houston West I, II and III and Houston Galleria data centres, which add over 300,000ft2 of raised-floor data centre capacity to DataBank

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CyrusOne to divest four data centres in Houston to DataBank. (Credit: Akela999 from Pixabay)

DataBank, a provider of enterprise-class colocation, interconnection, and managed cloud services, has agreed to acquire four existing data centres in Houston, Texas from CyrusOne for $670m.

Collectively, the four facilities in Houston add over 300,000ft2 of raised-floor data centre capacity to DataBank, which is a portfolio company of DigitalBridge Group.

Besides, the facilities bring 42.5MW of critical IT load and a list of blue-chip customers from Houston’s healthcare, financial, media, energy, and software sectors to DataBank.

The deal will make Houston the 27th major metro market in the US in DataBank’s portfolio.

The facilities involved in the deal are the Houston West I, II and III and Houston Galleria data centres.

The Houston West Campus is also the region’s main interconnection point with more than 30 fibre networks, 3,500 cross connects, and public cloud on-ramps from Google and Amazon Web Services (AWS).

DataBank CEO Raul Martynek said: “We are excited to add the Houston market to the DataBank portfolio.

“With our deep roots in Texas, it was a logical metro for us to expand into and allows us to bring our digital infrastructure and interconnection solutions to the 4th largest metro in the U.S.  With the addition of Houston, DataBank now covers 27 metro markets, a larger geographic footprint in the U.S. than any other data center operator.”

After the completion of the deal, DataBank’s total portfolio will have more than 65 facilities and two million square feet of raised-floor data centre capacity.

CyrusOne will lease back the Houston West III shell from DataBank to support a lease signed with a hyperscale customer in Q4 2021.

CyrusOne interim president and CEO David Ferdman said: “We are excited to execute on our capital recycling initiative to fund our continued growth.

“This divestiture further optimises our portfolio as we redeploy capital into accretive developments across core markets with diverse hyperscale and enterprise demand in the U.S. and Europe.”

The deal, which is subject to customary conditions and regulatory approvals, is anticipated to close by the end of Q1 2022.

In November 2021, CyrusOne agreed to be acquired by KKR and Global Infrastructure Partners (GIP) for a sum of around $15bn.