Digital Bridge, the communications infrastructure company founded by tower investor Marc Ganzi, has bought a Texas company that owns and operates data centers. DataBank, formerly owned by a private equity firm, owns six data centers in Dallas, Minneapolis and Kansas City.
The companies did not disclose the acquisition price. Digital Bridge said it partnered with Teachers Insurance and Annuity Association of America (TIAA), Allstate Investments and The Edgewater Funds in the acquisition.
Data centers are an increasingly important part of wireless infrastructure, but like cell towers they are typically not seen by the carriers as part of their core business. The two largest U.S. carriers have both sold their tower assets, and Verizon is said to be looking for a buyer for its data centers as well. Digital Bridge is the first major wireless infrastructure owner to buy data centers.
“As part of our broader communications infrastructure strategy, we have assembled a team of senior executives with significant experience in the data center sector,” said Marc Ganzi, founder and CEO of Digital Bridge. “DataBank has a premier brand and reputation. We are excited to have them as part of our portfolio, and to create a platform for growth and further industry consolidation.”
Ganzi told Reuters that he hopes to buy more data centers in the future, and sees DataBank as a “launching pad” for further investment.
For DataBank, the Digital Bridge investment should offer the opportunity for further expansion. DataBank and Digital Bridge’s other companies are likely to have common customers.
“Digital Bridge is an ideal partner,” said Tim Moore, CEO of DataBank. “They bring deep expertise in communications infrastructure, and the capital to support expansion in both our existing markets and new geographies. We see significant demand from current and potential customers, and believe that this transaction positions DataBank to capture those opportunities and accelerate our growth.”
Other assets owned or controlled by Digital Bridge include Vertical Bridge, ExteNet Systems and Mexico Tower Partners. Ganzi’s partner in Digital Bridge is investor Ben Jenkins of Dering Capital, formerly of The Blackstone Group.
Digital Bridge buys data center company
