King Street acquires majority interest in leading liquid-cooled AI data centre operator

King Street acquires majority interest in leading liquid-cooled AI data centre operator

The transaction enables Colovore to expand significantly with King Street’s differentiated capabilities in real estate.

King Street Capital Management, a leading global investment firm, has announced it has acquired a majority ownership stake in Colovore, a Silicon Valley-based data centre operator that specialises in liquid-cooled, high-density colocation for Artificial Intelligence (AI) and High-Performance Computing (HPC).

The transaction will leverage King Street’s deep real estate platform to support Colovore’s continued growth to meet increased demand for liquid-cooled data centre solutions.

Terms of the transaction were not disclosed. The existing management team of Colovore will remain in place to rapidly expand the business.

“The next-generation chips and power-dense platforms that support AI and other High-Performance Computing applications are quickly overwhelming legacy, air-cooled data centres,” said Brian Higgins, Co-founder and Managing Partner, King Street. “Colovore is uniquely positioned to meet the needs of these high-density customers, with a business focused exclusively on liquid-cooled data centres and over a decade of successful operating history supporting many of the leaders in the AI and HPC industries. We are thrilled to partner with the management team of Colovore and support this next phase of the company’s evolution.”

Mark Van Zandt, Co-Head of Real Estate, King Street, added: “King Street’s data centre investment platform is an extension of its thematic approach to global real estate investing. Working in close coordination with our colleagues in the technology and energy sectors, we bring a comprehensive and differentiated perspective to the data centre industry and look forward to working with Colovore to capitalise on this rapidly evolving investment opportunity.”

With locations in Santa Clara, California and Nevada, Colovore plans to quickly scale into additional Tier 1 markets across the country under King Street’s sponsorship.

“Since 2012, we’ve been singularly focused on supporting the demanding and ever-increasing needs of modern, dense compute,” said Sean Holzknecht, President and Co-founder of Colovore. “We build our data centres from the ground up with robust liquid-cooling to provide the most scalable power and cooling densities in our industry to optimise our customers’ deployments, reduce their TCO and ensure easy scalability.

“We look forward to working closely with our new partner King Street to quickly expand our data centre footprint and support larger and more demanding customer needs created by the explosion in AI-driven workloads,” added Holzknecht.

“We founded Colovore to allow engineers from Fortune 500s to start-ups to seamlessly create successive waves of innovation in compute-intensive and AI-oriented services,” said Peter Harrison, Chief Technology Officer and Co-founder of Colovore. “Our partnership with King Street will expand our platform to many additional markets, and together we will continue to transform the data centre industry and enable these emerging technologies and applications to thrive.”

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