Brookfield Infrastructure’s Evoque-Cyxtera Data Center Collaboration Emerges as Centersquare

Centersquare is the newly introduced brand for the colocation business of Brookfield Infrastructure Partners, produced by merging Evoque Data Center Solutions and the infrastructure fund’s recently-acquired Cyxtera Technologies. Notably, the combination of colocation providers brings together two companies built atop portfolios of telecom data centers.

(Ed. Note – Centersquare should not be confused with CenterSquare Investment Management, who itself this month announced financing for Aligned Data Centers.)

“With this launch, we bring to the market 320 megawatts (MW) in over 50 data center locations, and an additional 100 MW of near-term under-roof expansion areas, under the Centersquare banner,” said Udhay Mathialagan, Chairman of the Board at Centersquare and CEO, Global Data Centers for Brookfield Infrastructure. 

Mathialagan added, “Rapidly building up this scale showcases our platform’s ability to partner with management to increase capacity, both organically and inorganically, to meet the diverse and growing demands of our customers.”

A Deep Legacy in Data Centers

Centersquare carries forward a deep legacy in the data center industry, based on the collaboration that unites Evoque and Cyxtera’s robust and expansive digital infrastructure and data center portfolios. 

Evoque’s business model has historically focused on colocation services and cloud consulting. The company was formed by Brookfield in late 2018 after it acquired a portfolio of data centers from AT&T for $1.1 billion. 

In 2022, Evoque announced an expansion into the market for hyperscale computing, offering built-to-suit data centers backed by green energy, which could include on-site renewable power. That initiative taps into the substantial resources of Brookfield, whose global investment portfolio includes renewable energy companies and a large real estate portfolio.

For its part, Cyxtera’s data center footprint was acquired in 2017 from telecom provider CenturyLink by company founder Manuel Medina in a $2.8 billion deal backed by BC Partners, a European private equity firm. Cyxtera’s global network includes upwards of 60 data centers supporting 2,300 customers. The company had $746 million in revenue in 2022.

Last November, Brookfield acquired substantially all of Cyxtera’s data center assets for $775 million. Involving transactions for 7 existing U.S. data center properties. (Cyxtera’s entry into an asset purchase agreement with Brookfield also effectively bought out Digital Realty’s exposure to Cyxtera, which was one of its largest tenants.)

Completed in early 2024, the successful acquisition of Cyxtera by Brookfield’s Evoque Data Center Solutions established a formidable entity in 17 data center markets, primarily across North America

Brookfield has been investing in data centers for years, and is one of the largest infrastructure funds. Such funds traditionally invest in capital-intensive projects like airports and toll roads, and tend to have longer timelines for returns on investment. In recent years these funds have been flooding the digital infrastructure sector, seeing opportunity in the growth of data and digital services.

As previously noted by DCF’s Rich Miller, infrastructure funds tend to have real estate holdings, expertise in energy development, including renewables, and access to capital. As the data center sector struggles to keep pace with surging demand, these huge investors can offer Internet-scale solutions to the sector’s challenges. 

Along with Centersquare, Brookfield Infrastructure’s global data center portfolio also includes DCI Data Centers in APAC, Data4 in Europe and hyperscale operator Compass Data Centers in North America, among others. Brookfield has also partnered with Digital Realty on the Ascenty data center platform in South America and a similar JV in India.

More Than a Name Change

Headquartered in Dallas, Texas, Centersquare is now positioned a retail/wholesale colocation and interconnection provider enabling digital infrastructure solutions for enterprises and service providers, the better “to optimize their infrastructure spend, drive innovation, and connect worldwide,” as stated in a company press release. 

Catering to a diverse clientele ranging from mid-sized enterprises to large web-scale businesses, Centersquare emphasized that it “not only ensures compliance with industry regulations but also guarantees unmatched uptime.”

Spencer Mullee, CEO of Centersquare, commented:

“The birth of Centersquare is more than a name change. It’s a reflection of our commitment to deliver enhanced capabilities and innovation. By combining the strengths of two industry leaders, we’re poised to provide unparalleled service, ensuring our customers benefit from increased capacity, diverse options, more flexibility, and unmatched reliability backed by our experienced team.”

As stated in a press release, the transition to Centersquare will be a gradual, well-orchestrated process, set for completion by this summer.

Mitchell Fonseca, Centersquare’s Chief Operating Officer concluded:

“Our rebranding is not just cosmetic. It’s a strategic shift towards offering more sophisticated solutions while maintaining the expert service level that is our hallmark. We’re excited to embark on this journey, bringing our customers and partners along as we elevate our offerings to new heights.”

Visit the company’s website: https://centersquaredc.com/