CapRE’s Data Center Industry Round Up for September 5

Check out the latest in deals, development and disruptive technology in the data center space for September 5, 2018:

  • Microsoft Faults “Severe Weather” for Azure Cloud Outage: A cooling problem in one of its San Antonio, Texas, data centers effected Office 365 and Azure cloud outages for some customers according to Microsoft. According to the company, the issue was triggered by a voltage spike that resulted from a “severe weather event, including lighting strikes” near the facility. The outage was limited to resources hosted in the South Central US availability region but recognized that customers in other regions may have had problems too. While the “preliminary root-cause” was a severe weather-related cooling issue, applications turned off when the system automatically started to shut off hardware to prevent damage from high temperature. Now, engineers have reinstated power to the facility and recovered most of the impacted network devices.
  • data center summitIPI Partners Purchases Illinois Suburban Data Center for $118.9 Million: IPI Partners procured an Elk Grove Village, Illinois, data center for $118.9 million USD, showing continued investor interest in the growing industrial sector. T5 Data Centers sold the 208,000-square-foot, 10-megawatt facility at 1441 Touhy Avenue that was made by Forsythe Technology, opened in 2015 and sold to T5 in 2016. IPI Partners, a joint venture between ICONIQ Capital and an affiliate of Iron Point Partners invests, in data centers and other technology and connectivity-related assets. In March, it purchased three Infomart data centers in San Jose, California; Hillsboro, Oregon; and Ashburn, Virginia. In Chicago, the area around O’Hare International Airport maintains strong data center activity, with CIM Group and 1547 Critical Systems Realty recently buying a historic former South Side baking plant with tactics to convert it into a 24 megawatt data center.
  • Plano Data Center Sells as Part of 3-State Investment Deal: A Dallas-based data center company joined up with a global investment group to buy properties in North Texas and two other cities. Lincoln Rackhouse and Principal Real Estate Investors purchased a large Plano data center and facilities in Phoenix and Kansas City totaling 1 million square feet. The Plano building has more than 454,000 square feet and is the largest of the facilities included in the deal. Ryan Sullivan, managing director of Dallas-based Lincoln Rackhouse, said in a statement, “This acquisition doubles our portfolio and allows us to offer cloud, colocation and managed services providers attractive expansion or new entry options into these key data center markets. The transaction has launched the West and Midwest regions of the country for Lincoln Property Co.’s data center division. We were able to acquire this portfolio because we were patient, flexible and have a proven track record of performance with the seller.”
  • MainOne & Minkels Strategize Additional Data Centers in West Africa: Legrand subsidiary Minkels is joining up with MainOne to expand telecommunications company’s data center business. The companies expect to spend the next decade designing and constructing data centers in Sagamu, in the south west of Nigeria; Ghana’s capital, Accra; and in the Côte d’Ivoire’s largest city, Abidjan. In addition, the team will extend MainOne’s flagship data center in Lagos, which recently received Uptime Institute’s Tier III Constructed Facility certification. Earlier in 2018, the company broadcast a $6.58 million USD investment to increase operations at the site. When the data center project began in 2014, the company said it would spend $40 million on building it out and it has so far spent approximately $35 million.
  • Montana Senator Warns Upcoming Closing of Coal Plant Will Stifle Bitcoin Mining Industry: The junior United States Senator from Montana, Steve Daines, warned that the planned closure of a coal power generator could harm the booming bitcoin mining business in the state. According to KULR-TV, all the four units of the Colstrip coal plant located in Rosebud County are expected to shut down by 2027. Senator Daines during a U.S. Senate Energy and Natural Resources Committee meeting, said, “As the demand for Bitcoin miners increases and supply of cheap, reliable electricity from coal generation decreases, this could pose a threat of the expansion of Bitcoin generation and even greater threat to energy supply and prices for Montana as a whole.”