The data center industry continues to soar with growing demands for AI technologies. Companies like DataBank, offering premium performance data centers for enterprise use, are reaping the benefits.
Highlighting this trend, DataBank recently confirmed a $250 million equity investment from TJC – a private equity firm, with an additional $600 million from a secondary share offer.
Raul K. Martynek, CEO of DataBank, views the inflow as proof of faith in their strategic plan and a testament to their capability to scale successfully.
Established in 2005, DataBank was taken over in 2016 by an investment team led by the asset manager, DigitalBridge, and merged with other data center providers. The company, boasting over 65 data centers across 27 markets, has since grown through a series of acquisitions. In a span of just a year and a half, DataBank has amassed a remarkable $5 billion.
A partner at TJC, Eion Hu, is notably upbeat about the venture and views data centers as a key player in digital transformation and AI.
Neocloud startups, a parallel sector to DataBank, are also flourishing, primarily providing low-cost, on-demand clouds for AI workloads.
According to a report by McKinsey, capital expenditure on data center installations could exceed $250 billion in the next half-decade, despite mounting concerns over their environmental impact, including high water usage.
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