Brookfield Infrastructure Partners: DigitalBridge and Brookfield Want to Purchase Compass Datacenters

Brookfield Infrastructure Partners and DigitalBridge are both interested in purchasing Compass Datacenters. A transaction could value the company over $5.5 billion, including debt. The auction for privately held Compass is being led by Brookfield and DigitalBridge, with a decision expected within the next month.  Compass was founded in 2011 and presently operates or is developing approximately 16 data center sites in the United States, Europe, and Israel. The company also provides modular facilities. In Virginia, the firm intends to construct an 11 million-square-foot data center campus. RedBird Capital Partners, Ontario Teachers' Pension Plan, and Azrieli Group support Compass.

In February, Compass was considering a sale; the company initiated the process in October 2022. In 2023, the company anticipates an EBITDA profit of $85 million. Brookfield and DigitalBridge have substantial data center holdings and have previously executed billion-dollar transactions in this industry. According to reports, investment giant Brookfield recently purchased European data center company Data4 in a transaction valued at approximately $3.77 billion. In addition, the company owns data center ventures in India (BAM Digital Realty) and Latin America (Ascenty) in partnership with Digital Realty, as well as DCI Data Centers in Australia/New Zealand. On its website, Brookfield states that it possesses approximately 50 data centers, more than 163,000 tower & rooftop sites, and approximately 17,000 miles of fiber.

Digital infrastructure investor DigitalBridge holds shares in a number of data center companies, including Expedient, DataBank, Vantage, Switch, AtlasEdge, AIMS DC, Scala, LEDC, and Landmark Dividend. It took Switch private in a $11 billion transaction with IFM last year.