Digital Realty Trust: GI Partners acquires the majority stake in 2 Chicago data centers from Digital Realty

Jul 18, 2023 | Posted by Abdul-Rahman Oladimeji

GI Partners has acquired a majority stake in two data centers in Chicago, Illinois, from Digital Realty. This week, the business announced that it had formed a joint venture with GI Partners to sell a 65 percent stake in two stabilized hyper-scale data center facilities and their associated machinery in the Chicago metropolitan area. Although the sale was only verified this week, it was first reported in June 2023. Digital stated that it will receive approximately $743 million in aggregate proceeds from the joint venture and related financing and will retain a 35 percent stake in the joint venture while continuing to handle the day-to-day operations of the assets.

The financing is made through GI Partners' Essential Tech + Science Fund (ETS Fund). Additionally, the investment firm can acquire a stake in the third facility on the same hyperscale data center campus. The two facilities are presumably 2200 Busse Road (aka CH1) and the building located next door at 1400 East Devon Avenue (aka CH3) in the Elk Grove neighborhood of Chicago, although the companies did not confirm this. The 485,000-square-foot, single-story CH1 has a maximum capacity of 80MW. The single-story CH3 provides 30 MW across 305,000-square-foot. The sites are said to be more than 90 percent occupied, serving a blend of hyperscale, enterprise, and carrier clients.

The three-building campus outside of Chicago, completed by 2299 Busse Road, was acquired as part of the 2017 merger between DuPont and Fabros. Phase one of the first structure was finished in 2008, and construction on CH3 commenced in 2017.