H5 Data Centers Expands National Footprint with Strategic Three-Market Acquisition
In a move that significantly strengthens its position as a premier provider of mission-critical digital infrastructure, H5 Data Centers has announced the successful acquisition of three high-density data centers from 365 Data Centers. The transaction includes key facilities in Buffalo, New York; Nashville, Tennessee; and Tampa, Florida.
This acquisition is not merely a transfer of real estate; it represents a calculated expansion into high-value regional markets where interconnection and carrier density are at a premium. By absorbing these assets, H5 Data Centers reinforces its reputation for managing the “connective tissue” of the American internet, focusing on locations that serve as vital hubs for data traffic and digital commerce.
Strengthening the Interconnection Ecosystem
The three facilities are characterized by their carrier-dense environments, meaning they house a high concentration of telecommunications providers, internet service providers (ISPs), and content delivery networks (CDNs). In the world of data centers, density equals value.
- Buffalo, NY: Serves as a critical gateway for traffic moving between the Northeastern U.S. and Canada.
- Nashville, TN: A booming tech hub where enterprise demand for low-latency connectivity is skyrocketing.
- Tampa, FL: A vital node for the Southeastern U.S. and a primary landing point for diverse fiber routes.
Josh Simms, CEO of H5 Data Centers, emphasized that these sites are perfectly aligned with the company’s core mission. “These facilities are important digital infrastructure assets with deeply interconnected ecosystems and long-standing customer relationships,” Simms stated. He noted that the acquisition supports the company’s goal of hosting the “next generation of cloud, AI, and enterprise workloads.”
A Proven Partnership with Novacap
This transaction marks the second major portfolio collaboration between H5 Data Centers and Novacap, a leading North American private equity firm. The duo previously partnered in January of last year to acquire a wholesale data center portfolio, signaling a robust and ongoing investment strategy focused on the digital infrastructure sector.
Ted Mocarski, Senior Partner and Head of Digital Infrastructure at Novacap, highlighted the synergy between H5’s operational prowess and Novacap’s investment vision. According to Mocarski, the acquisition fits “squarely within our strategy of building a diversified portfolio of high-quality digital infrastructure assets.” For investors, this move underscores the continued appetite for “brick-and-mortar” tech assets that provide the foundational power and cooling necessary for the modern digital economy.
Strategic Rebranding and 365’s Path Forward
For 365 Data Centers, the sale represents a strategic pivot. By divesting these three specific hubs, 365 gains significant liquidity to reinvest in its remaining portfolio. Derek Gillespie, CEO of 365 Data Centers, expressed pride in the development of these regional hubs and confidence in H5’s ability to maintain high standards under the HyscaleIX brand.
“The sales proceeds will further enable 365 to expand and deliver higher-density MW services at a number of our larger facilities,” Gillespie explained.
This suggests a market trend where providers are specializing—some, like H5, focusing on wide-reaching interconnection ecosystems, while others, like 365, lean into high-density power requirements (Megawatts) to satisfy the massive energy demands of modern AI and hyperscale computing.
Why This Matters for the Industry
The acquisition highlights several key trends currently shaping the data center industry:
- The Rise of Edge and Regional Hubs: As AI and real-time data processing become ubiquitous, data cannot always travel back to a “mothership” in Silicon Valley or Northern Virginia. Regional hubs like Nashville and Buffalo are essential for reducing latency.
- Consolidation of Interconnection: Controlling the “meet-me rooms”—the physical spaces where networks connect—is a high-barrier-to-entry business. H5’s acquisition of these specific assets makes them an indispensable partner for any company needing to move data through these three major metropolitan areas.
- Capital Fluidity: The involvement of private equity (Novacap) demonstrates that digital infrastructure remains one of the most attractive asset classes for long-term, stable growth.
With this acquisition, H5 Data Centers has not only increased its square footage but has also strategically positioned itself at the crossroads of regional internet traffic. By integrating these Buffalo, Nashville, and Tampa facilities into their national network, they offer customers a seamless, interconnected platform across multiple high-growth markets.
As the demand for AI-ready infrastructure and low-latency connectivity continues to outpace supply, H5’s expansion ensures they remain a dominant force in the North American digital landscape. For the customers in these facilities—ranging from local enterprises to global cloud providers—the transition promises a future backed by H5’s deep operational expertise and a commitment to building world-class interconnection ecosystems.
Source Link:https://www.businesswire.com/
