Stonepeak is partnering with CoreSite to develop a data center in Denver, Colorado.
The infrastructure investment firm this week announced that it has formed a joint venture with American Tower subsidiary CoreSite to develop, construct, and operate an 18MW data center in Denver.
Stonepeak is expected to hold 85 percent of the equity of the CoreSite DevCo JV, with CoreSite holding the remaining 15 percent. CoreSite will operate the facility, known as DE3.
The investment is being made primarily through the Stonepeak Opportunities Fund.
Andrew Thomas, senior managing director at Stonepeak, said: “We are excited to continue our long-term partnership with the American Tower and CoreSite teams to help accelerate investment behind key digitalization tailwinds. We believe the CoreSite DevCo JV will immediately benefit from CoreSite’s leading interconnection platform in the fast-growing Denver market through dedicated dark fiber to CoreSite’s existing facilities, which provides DE3 customers with differentiated access to an established ecosystem on Day 1.”
Steven Vondran, American Tower president and CEO, added: “We are pleased to continue our partnership with Stonepeak in our US data center platform, with the formation of a new joint venture to construct a new data center in the growing Denver market. The CoreSite DevCo JV enables us to strategically execute on key growth opportunities by expanding our data center campus model in the region and create value by capitalizing on demand tailwinds as the primary interconnection hub in Denver.”
CoreSite operates 28 facilities across 11 US markets. It has two data centers in Denver totaling 35,000 sq ft (3,250 sqm); DE1 at 910 15th Street, and DE2 at 639 East 18th Avenue.
The company announced plans for a new Denver campus in late 2023. At the time, the company said it had received conceptual approval for a three-building data center campus development of approximately 600,000 sq ft (55,740 sqm) and 60MW of capacity. To be constructed on 15 acres at 4900 N. Race Street, the first of three facilities will offer 18MW across three stories. Timelines were not shared.
Stonepeak said DE3 will be constructed on a modular basis over three 6MW phases, for a total estimated development cost of more than $250 million.
American Tower, a company traditionally focused on owning cell towers, acquired CoreSite for $10.1 billion in November 2021. Stonepeak subsequently acquired a 29 percent stake in CoreSite for $2.5 billion the following year.
Stonepeak’s digital infrastructure investments include APAC operator Digital Edge, LATAM firm Cirion, North American operator Cologix, and Guam telco GTA. It also has investments in a number of tower firms.
Sidley Austin LLP is serving as legal advisor to Stonepeak. Cleary Gottlieb Steen & Hamilton LLP is serving as legal advisor to American Tower, which is also being advised by Sullivan & Worcester LLP with respect to certain REIT and tax matters.
