CPP and Equinix Buy Data Center Platform
CPP Investments and strategic operator Equinix are teaming up to acquire atNorth, a pan-Nordic data center platform, for $4 billion. This joint bid pairs a pension fund's long-term capital with a strategic's operational expertise. The co-control structure is becoming a popular model for acquiring large, capital-intensive infrastructure assets in the TMT space.
The seller, private equity firm Partners Group, orchestrated a highly profitable exit, having acquired atNorth in 2022. Under its ownership, atNorth's contracted EBITDA grew 14-fold, delivering compounded annual returns of over 30% and a 2.5x multiple on invested capital for Partners Group's clients. Reflecting its confidence in the asset's future, Partners Group is reinvesting to retain a stake of up to 10%. Under the co-control structure, CPP Investments will hold a 60% controlling interest with an investment of approximately $1.6 billion, while Equinix will own the remaining 40%. This deal builds on a pre-existing relationship; the two previously collaborated on a 2024 joint venture with Singapore's GIC to expand the Equinix xScale® data center program. atNorth will continue to operate as an independent brand. To fund the acquisition and an ambitious expansion plan, the buyers have secured a $4.2 billion financing package underwritten by a syndicate of European and Canadian lenders. This debt facility provides leverage for the initial purchase and the capital required to build out atNorth's development pipeline. The strategic appeal lies in atNorth's physical assets and power pipeline, which are critical in a power-constrained industry. The company operates eight data centers across Denmark, Finland, Iceland, Norway, and Sweden, with more under development. Crucially, atNorth has 1 GW of secured power for future expansion, with a planned pipeline to bring ~800 MW online over the next five years. The Nordic region is a prime location for data centers due to its abundance of renewable energy sources like hydropower and geothermal, which offer lower costs and a greener footprint. The naturally cool climate also significantly reduces operational expenses by cutting cooling costs—a major expenditure for data centers—by up to 40% compared to warmer climates. This acquisition is a direct play on the surging demand for artificial intelligence and high-performance computing (HPC). atNorth specializes in high-density facilities, with several sites enabled for liquid cooling, a necessary technology to manage the intense heat generated by AI workloads.
