Involta's data center in Duluth, Minnesota. (Photo: Involta)

Involta's data center in Duluth, Minnesota. (Photo: Involta)

Data Center Provider Involta Raises $50M in Private Equity

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Data center service provider Involta has raised $50 million in private equity in a round led by M/C Partners, with participation by Morgan Stanley.

Cedar Rapids, Iowa-based Involta provides a range of data center outsourcing services, including colocation, managed services and consulting. It operates five data centers in Ohio, Idaho, Minnesota, Iowa and Arizona.

Investment in lower-tier U.S. data center markets has been pouring in at a steady pace this year, and the Involta deal is only the most recent example of the continued flow of data center private equity.

Other examples include a $100 million round raised by Compass Datacenters, Online Tech’s acquisition of an Indianapolis data center and DataBank’s acquisition of Arsalon – a Lenexa, Kansas, provider. All three deals took place in May.

In June, we reported on TierPoint’s acquisition of a data center in Philadelphia, following recapitalization of the company via acquisition by its own management team together with a group of investors.

Involta data center locations:

  • Akron, Ohio
  • Boise, Idaho
  • Duluth, Minnesota
  • Marion, Iowa
  • Tucson, Arizona

Gillis Cashman, managing partner at M/C Partners, said the private equity firm saw Involta play a leading role as a data center provider in “underdeveloped” Tier II and Tier III markets. “There is a tremendous need for infrastructure in those areas, and Involta is very well positioned to address those needs,” Cashman said.

M/C Partners already has a few data center deals with successful exits under its belt. It has invested in Fusepoint, a managed hosting and colocation firm sold to Savvis in 2010, and in Attenda, a UK managed hosting provider sold to London’s Darwin Private Equity in 2011.

About the Author

San Francisco-based business and technology journalist. Editor in chief at Data Center Knowledge, covering the global data center industry.

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  1. It is nice to see more data centers offering managed services as part of their product offerings. It is nice for businesses to be able to one stop shop for their colo, cloud, consulting and managed services needs.