Compass Datacenters Acquires Root Data Center, Expanding Focus on Hyperscale Market
DALLAS–(BUSINESS WIRE)–Compass Datacenters, LLC (“Compass”) today announced that it has completed the acquisition of ROOT Data Center (“ROOT”), a leading wholesale data center provider in Montreal, Quebec. The ROOT acquisition is the first by Compass since its recently announced plan to develop up to $3 billion in new data center campuses, which included follow-on investments from existing investors RedBird Capital Partners and Ontario Teachers’ Pension Plan, as well as from new investment partner the Azrieli Group Ltd., a leading Israeli real estate development company. Financial terms of the ROOT transaction were not disclosed.
The acquisition of ROOT adds significant scale to the Compass platform and is highly complementary to Compass’s core strategy of serving high-growth hyperscale and cloud customers with dedicated facilities delivered on expedited timelines. Following the acquisition, Compass has the capacity to expand up to 375MW of IT load across its current campuses.
“We are pleased to announce this acquisition and welcome the ROOT team to Compass. Our team has been impressed with what AJ and his team have built and their strong reputation with customers. We have an exceptional alignment of culture and experienced personnel, emphasizing the use of standardized components and processes to facilitate rapid data center delivery for our customers,” said Chris Crosby, CEO of Compass Datacenters. “At the same time, we are close to completing the first building on our Northern Virginia campus and have begun construction on our Phoenix campus. Overall, we are on track to deliver substantial capacity in some of the fastest growing hyperscale markets across the U.S. and Canada.”
AJ Byers, CEO of ROOT, who is joining Compass as the company’s President, International, commented, “We are excited to join the Compass team. Our existing customers now have access to strategic U.S. markets, while Compass’s customers benefit from what Montreal brings. In particular, Montreal’s ample fiber capacity and inexpensive supply of renewable power via Hydro-Québec enables cloud/hyperscale companies to achieve their sustainability goals while also growing at the pace necessary to meet demand.”
“Compass now has a foothold in three of the fastest-growing markets in North America – Montreal, Phoenix and Northern Virginia. Montreal, a particularly strong market, is a hub for both enterprise and hyperscale deployments,” said Kelly Morgan, Vice President of Research at The 451 Group. “With this acquisition, Compass immediately becomes one of the top three wholesale providers in Montreal and gains an experienced management team there that can enable continued expansion in the area and beyond.”
McMillan LLP and Wick Phillips served as legal counsel to Compass on the transaction, while DH Capital, LLC served as exclusive financial advisor and Dentons LLP served as legal advisor to ROOT Data Center.
About Compass Datacenters
Compass Datacenters provides solutions from the core to the edge. The company serves cloud and SaaS providers, enterprises, colocation and hosting companies, and customers with distributed infrastructure requirements. Compass’s investors, Ontario Teachers’ Pension Plan, RedBird Capital Partners and the Azrieli Group, bring a long-term perspective and significant financial resources. Compass’s executive team has built more than $4 billion worth of data centers and edge computing facilities and has operated over ten million square feet of raised floor facilities worldwide. Compass delivers build-to-order data centers which are superior to competing alternatives, enabling its customers to build “what you want, where you want, when your business needs it”. For more information, visit www.compassdatacenters.com.
About ROOT Data Center
ROOT is a next-generation data center company that provides both enterprise and wholesale colocation solutions to empower the world’s computing leaders. Its modular design promises optimal agility and efficiency, which enables all customers to scale their technology infrastructure and grow with confidence. Upon completion of its greenfield expansion at MTL-R1, ROOT will offer 65 MW of premium capacity to the Montréal market. Less power to waste, more power to you. For more information, visit www.rootdatacenter.com.