Vantage Data Centers is expanding – by a lot – in Canada.
The developer, whose focus has been building (and buying) large data centers and leasing them wholesale to large customers, has acquired the colocation business of Hypertec, which sells a variety of computing infrastructure services but has apparently decided to get out of the business of selling data center space and power.
Vantage is taking over Hypertec’s data center campus in Montreal, which already has two facilities with 25MW of capacity total and enough expansion capacity to build a third one for an additional 24MW, which Vantage said it would start building immediately.
At full buildout, the campus will give Vantage about five times its current capacity in Montreal. The existing 11MW Vantage Montreal campus is about two miles away.
Terms of the transaction were not disclosed.
Vantage announced the deal – its third acquisition this year, the other two being its Etix Everywhere and NGD deals in Europe – one day after it announced a $1.25 billion equity investment from its existing investors, led by one of its largest backers, Digital Colony.
These investors' commitments funded the Hypertec deal, combined with some amount of acquisition debt financing, Vantage said.
Earlier this year, Colony Capital, which launched the Digital Colony fund together with Vantage’s owner Digital Bridge, led a $1.2 billion investment in the data center provider.
Montreal is a relatively small data center market – at least when compared to places like Silicon Valley, Chicago, or Phoenix – but there’s been some notable activity there this year.
The biggest thing that happened in Quebec’s data center world was Equinix acquiring Bell Canada’s data center portfolio, which included some major facilities in the province hosting more than 600 companies’ technical infrastructure, according to an August CBRE market report.
Some of North America’s largest data center providers are now playing in the Montreal market, where most of the growth is driven by expanding footprints of the major cloud platforms, according to CBRE.