Goldman buys QScale data centre

Goldman Sachs Alternatives said on May 13 that it had closed its acquisition of QScale, a Quebec-based developer and operator of AI-ready data centres, in partnership with the company’s founders and management team. QScale said those founders and managers are reinvesting alongside Goldman Sachs Alternatives and will continue to lead the business. (am.gs.com) The companies did not disclose financial terms. BetaKit reported the deal on May 14 after Goldman Sachs and QScale announced it the previous day. (datacenterdynamics.com) QScale said it was founded in Quebec and designs, builds and operates facilities built for high-performance computing and artificial-intelligence workloads. Goldman Sachs Alternatives said the company’s flagship Q01 campus in Lévis uses Quebec’s hydro-dominated power grid and cold-climate cooling conditions. (am.gs.com) Data Center Dynamics reported that Q01 is expected to reach 142 megawatts of IT capacity at full build-out. ### Who is staying after the deal closes? QScale said on May 13 that its founders and management team will remain shareholders and continue to lead the company after the acquisition. The company also said it will keep its headquarters in Quebec, according to BetaKit’s report. (am.gs.com) Martin Bouchard, QScale’s founder and chief executive, said Goldman Sachs Alternatives gives the company “the capital base and the global network” to scale faster and serve larger hyperscale and AI customers. Leonard Seevers, a partner at Goldman Sachs Alternatives, said the firm plans to support QScale’s build-out. (am.gs.com) ### What exactly is Goldman buying? QScale’s main asset is its data-centre platform in Lévis, where the company began construction on its first campus in 2021 and started work on a second building in 2022, according to Data Center Dynamics. The same report said the site is designed for 142 megawatts of IT capacity when fully built. (am.gs.com) Goldman Sachs Alternatives said QScale builds “purpose-built data centers” engineered for the power densities and thermal demands of AI and high-performance computing. The firm said QScale is also developing additional campuses across Canada to meet customer demand. (am.gs.com) ### Was this sale expected? QScale said in March that it had launched a strategic review to support growth in Quebec and beyond, according to Data Center Dynamics. That report said Le Journal de Québec had reported discussions about a possible Goldman Sachs deal at a reported valuation of C$1.5 billion, though QScale did not confirm that figure. (datacenterdynamics.com) Data Center Dynamics reported on May 14 that the company was sold after that strategic review and that deal terms were not shared in the final announcement. Goldman Sachs and QScale have not publicly confirmed any valuation. (am.gs.com) ### Why are the companies talking about power, cooling and AI workloads? Goldman Sachs Alternatives said in its announcement that AI is increasing compute demand and changing infrastructure requirements for enterprise and consumer services. QScale said its facilities are designed for the density and thermal profile of AI and high-performance computing, and Goldman pointed to Quebec’s low-carbon electricity mix and climate as advantages for the Lévis campus. (datacenterdynamics.com) BetaKit reported that the acquisition comes as investors and operators focus more closely on facility capacity as AI demand rises. That framing came from BetaKit’s reporting; Goldman Sachs and QScale themselves described the deal as an expansion of AI-ready digital infrastructure in Canada. (datacenterdynamics.com) ### What comes next for QScale under Goldman? Goldman Sachs Alternatives said on May 13 that QScale is “actively developing additional campuses across Canada” beyond the Q01 site in Lévis. Data Center Dynamics reported that QScale has also announced plans for a second facility in the Ecoparc de Saint-Bruno-de-Montarville in the Montreal area. (am.gs.com) The companies also named the advisers on the transaction. Data Center Dynamics reported that Macquarie Capital and National Bank Capital Markets advised Goldman Sachs Alternatives, while Scotiabank and TD Securities advised QScale and its shareholders. Goldman Sachs and QScale also said Tom Ray is joining as an independent board member. (betakit.com) (datacenterdynamics.com) (am.gs.com)