Colocation provider C7 Data Centers has secured $25 million in debt and equity funding from MCG Capital Corporation and previous investment partner Signal Peak Ventures, the company said Tuesday. C7 said it will use the funding to expand its data center footprint and operations.
C7 operates four data centers in the Salt Lake City market. Its best known client is Twitter, but it also provides space for companies like Answers.com, Motorola and WestHost. The company says it has benefited from Utah's power rates, connectivity infrastructure, limited natural disasters and business environment.
“We’ve been extremely pleased with C7’s exponential growth and a ability to attract clients across industries,” said Brandon Tidwell, Managing Director of Signal Peak Ventures, which focuses its investment sint echnology and life sciences. “C7 has maintained customer satisfaction and retention levels that are remarkably high. Because of this, C7 has an immediate and massive opportunity to convincingly sell to new customers and provide additional data center services to existing customers.”
“We are excited to have led the debt portion of C7’s new capital funding which has been tailored to allow C7 to continue to keep pace with the robust demand for their data centers and services," said Bob Marcotte, Executive Vice President and Managing Director of MCG Capital. “The IT experience and unwavering service commitment of the C7 team have established the company as a leader in their ability to deliver on the critical data center production demands of even the most discriminating enterprise customers.”
C7 currently operates about 70,000 square feet of space, but says it is "researching additional acquisition and expansion opportunities." It hasn't indicated whether it will continue its focus on growth in Utah or expand into other markets.
“It’s important to work with institutions like MCG and Signal Peak Ventures who possess a deep understanding of the colocation market and evolving market demands during this stage of the company’s growth," said Wes Swenson, the CEO of C7 Data Centers. "Their support and committed funding provide C7 with the capital to continue to meet the dynamic market demand for its colocation services including the construction of additional data centers we have planned locally and regionally.”