GI Partners Takes Majority Interest in Hyperscale Data Center Portfolio in the Midwest from NYS: DLR
GI Partners Announces the Acquisition of a Majority Interest in a Hyperscale Data Center Portfolio in the Midwest from Digital Realty Trust
SCOTTSDALE, AZ, July 17, 2023 – GI Partners, a leading private alternatives investment firm, has announced the acquisition of a 65% interest in the ownership of two hyperscale data centers in Elk Grove Village, IL in partnership with Digital Realty Trust (NYSE: DLR). GI Partners is making the investment on behalf of its Essential Tech + Science Fund (GI Partners ETS Fund LP, the “ETS Fund”), the firm’s open-ended core-plus fund. The properties are over 90% occupied, primarily by investment-grade customers, and provide significant connectivity both to the Midwest region and nationally.
In conjunction with the transaction, Digital Realty Trust has retained a 35% interest and will continue to manage the day-to-day operations of the properties. The two properties have approximately 67 megawatts of IT capacity, serving a mix of hyperscale, enterprise and carrier customers.
“We are excited to announce the formation of a joint venture with one of the leading data center operators in the world and a company that GI Partners helped launch in 2001,” said Rick Magnuson, Founder and Executive Managing Director at GI Partners. “We look forward to our renewed partnership with Digital Realty and growing these assets alongside their team.”
John Sheputis, Managing Director and Head of the ETS Fund, said, “These properties were designed to serve today’s increased dense computer customer requirements and have been exceptionally maintained by a world-class team.” Rahul Chandiok, Principal, added, “The properties are able to provide efficient, high-density solutions for artificial intelligence and machine learning deployments while also providing low-latency connectivity to the Midwest market and to other major data center clusters.”
Since launching in 2021, the ETS Fund has acquired twenty-two properties and is actively investing in a diverse portfolio of data centers, life sciences properties, and “Always On” facilities across key markets in North America.
About GI Partners
Founded in 2001, GI Partners is a private investment firm with over 150 employees and offices in San Francisco, New York, Dallas, Chicago, Greenwich, Scottsdale, and London. The firm has raised more than $40 billion in capital and invests on behalf of leading institutional investors around the world through its private equity, real estate, and data infrastructure strategies. The private equity team invests primarily in companies in the healthcare, services, and software sectors. The real estate team focuses primarily on technology and life sciences properties as well as other specialized types of real estate. The data infrastructure team invests primarily in hard asset infrastructure businesses underpinning the digital economy. For more information, please visit www.gipartners.com.