Cordiant Digital Infrastructure, an investment fund specializing in “the plumbing of the Internet,” is planning to acquire American data center operator DataGryd, and its single property – located in an impressive Art Deco tower in Lower Manhattan’s Hudson Street.
This is the largest single footprint data center available in New York, offering 120,000 square feet of white space, and the potential for another 120,000 square feet to be added in the future.
Following the $74 million deal, the DataGryd brand will be retired, and the business will operate under a new name.
One expensive data center
DataGryd’s facility at 60 Hudson Street is an unusual proposition: a hyperscale data center located in a building that’s almost 100 years old. The 24-story office tower originally served as the headquarters of Western Union, housing an extensive telegraph operation, and has since emerged as the main network hub for the US East Coast.
DataGryd is not its only data center resident – the building is home to coloction providers including Equinix, Digital Realty, DataBank, and zColo, and more than 300 carriers and cloud providers interconnect in this location.
"The DataGryd platform offers our investors a compelling investment opportunity to invest in interconnect data centers and we are delighted to add this platform to our portfolio,” said Benn Mikula, managing partner and co-CEO at Cordiant Capital.
“This platform can deliver scale, high quality infrastructure, power and technical skill in what we believe is the most connected building in the most connected city globally. These are strategic assets with significant growth potential."
The company has designs for a much larger chunk of the tower: "As a patient, well-funded and long-term investor with industry expertise, Cordiant Digital Infrastructure is ideally positioned to support us in our planned expansion to four floors of 60 Hudson (over 20% of the leasable space in the building) and beyond,” said Thomas Brown, CEO at DataGryd.