Digital Realty Trust Inc. has agreed to buy Telx from
private-equity firms ABRY Partners and Berkshire Partners in a deal
valued at $1.89 billion, the latest sign of consolidation in the
data-center space.
Telx managed 1.3 million square feet of data center space as of
March 31 and leases more than half of its 20 facilities from
Digital Realty. Digital Realty said the deal will double its
footprint in the co-location business.
Co-location operators rent space by rack, cage or room. The
business has grown as companies increasingly outsource data
management and information-technology handling.
The deal is expected to close later in the year.
The acquisition comes amid rising demand for data centers—vast
warehouses of computer and telecom equipment that power the
Internet—as consumers use more data on their mobile phones and
so-called cloud services, a catchall term for files accessed
remotely over the Internet but hosted on outside computers.
Earlier this year, U.K.-based Telecity Group PLC agreed to merge
with U.S.-listed peer Interxion Holding NV to form a data-center
operator with a combined value of $4.5 billion as the industry in
Europe scrambles to meet ballooning demand for digital
services.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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