i/o Data Centers Gets $56 Million in Funding
Data center developer i/o Data Centers has received $56 million in financing from private equity firm Sterling Partners, and will use the money to expand its data center infrastructure. i/o Data Centers is based in Scottsdale, Ariz., the site of its first facility.
The equity investment by Sterling Partners positions i/o Data Centers to expand when other data center builders are suspending construction due to financing challenges or slowing the pace of their project schedules. Sterling believes that provides an opportunity.
“The continued high demand for data center services is not being met by existing supply or by existing service providers,” said Sterling Partners Principal Shoshana Vernick. “i/o Data Centers is well positioned to lead this next wave of data center expansion.”
The management team of i/o Data Centers developed and operated the Downtown Phoenix Technology Exchange before selling it to Digital Realty Trust in a 2006 deal valued at $175 million.
When i/o launched, it announced plans to expand its footprint throughout North America. That seemed unlikely n the current climate, but the financing positions the company to seize an opportunity to grow during
“The investment by Sterling provides i/o Data Centers with the capital to significantly expand our data center operations and meet this demand, even under the current difficult conditions in the credit and equity markets,” said Anthony Wanger, Co-Founder and President of i/o Data Centers. “We are profitable, growing, and well-capitalized, which means that we will continue to be the leading provider of scalable IT infrastructure to our customers.”
i/o Data Centers operates Scottsdale One, a 100,000 square foot managed data center located in the Perimeter Business Center business park in North Scottsdale, Ariz.