- Digital infrastructure investment firm DigitalBridge Group Inc said on Thursday it would sell a 27% stake in its data center platform, DataBank, to affiliates of Swiss Life Asset Management AG and EDF Invest for about $1.2 billion in cash.
The data center industry has emerged as a hotbed of consolidation activity over the past two years due to its role in cloud computing infrastructure and a strong growth outlook underpinned by the expanding digital presence of businesses.
DigitalBridge said it would own 15.5% of DataBank after the stake sale.
The company, which bought DataBank in 2016 for an undisclosed amount, said the burgeoning demand for data and video services has helped expand DataBank's footprint, capacity and customer base across the United States.
DataBank's portfolio comprises more than 65 data centers and 20 interconnection hubs in more than 27 markets, the company added.
DigitalBridge in May agreed to buy data center operator Switch Inc for $11 billion, including debt, marking a major deal in the digital asset sector that has attracted large private equity firms and infrastructure funds.