I Squared Capital to Acquire 10-Facility Data Center Portfolio from Cogent for $225M

I Squared Capital has agreed to acquire a portfolio of 10 data center facilities from Cogent Fiber, an indirect subsidiary of Cogent Communications Holdings, for $225 million in cash, launching a new U.S. data center operating platform.

The acquisition will serve as the foundation for a colocation-focused platform targeting high-density deployments and AI inference infrastructure. I Squared has committed up to $1 billion to scale the platform through capital investment, customer-driven expansion, and additional acquisitions.

The seed portfolio includes approximately 53 megawatts of installed power capacity and 259,000 square feet of colocation space across nine U.S. markets, including Chicago, Atlanta, Phoenix, and Los Angeles. The facilities are purpose-built, owned fee simple, and offer expansion potential, including support for liquid-cooled, high-density configurations.

“Location, power, and connectivity are the three variables that determine a data center’s long-term value, and these facilities have all three in markets where new supply is severely constrained,” said Gautam Bhandari, co-founder, managing partner and global CIO of I Squared Capital.

The transaction, expected to close in the third quarter of 2026, comes amid accelerating demand for digital infrastructure tied to AI and cloud computing. In April, I Squared agreed to acquire Elea Data Centers in Brazil, expanding its footprint in high-growth markets.

TVG Consulting Group served as commercial and market advisor on the Cogent deal. Kirkland & Ellis acted as legal counsel, with FTI Consulting advising on carve-out and stand-up execution.