Compass Data Centers Announces $3 Billion Expansion Plan

DALLAS, TX — Compass Datacenters has announced new growth initiatives to develop up to $3 billion in new data center campuses over the near term. This follows additional capital from existing investors, RedBird Capital Partners  and Ontario Teachers’ Pension Plan,  as well as new investment partner the Azrieli Group, a leading Israeli real estate development company.

Azrieli Group, an Israeli real estate developer is acquiring 20% of Compass Holdco (the holding company for Compass Data Centers) for $135 million USD. This will be Azrieli’s first investment in the North American data centers market, and they will now have the option to increase their holdings in Compass to 33% by December 2020. Azrieli said that it studied the data center market for two years before making the plunge.

“Chris and the Compass team have done a tremendous job over the last few years positioning the company to address the continued unmet demand in the data center market with bespoke campus development solutions for its customer base,” said Gerald Cardinale, Managing Partner of RedBird Capital. “We are excited to welcome the Azrieli Group to our investment partnership – with our collective financial and strategic capabilities, we are well-positioned to support the company as it enters its next major expansion phase.”

Chris Crosby is CEO of Compass Datacenters, a position he has held since September of 2011. Crosby is a frequent speaker at CAPRE International Data Center Series events. Crosby’s prior positions include Digital Realty Trust and Nortel Networks. Crosby graduated from The University of Texas at Austin in 1993.
Chris Crosby, CEO, Compass Datacenters

“Over the past two years, with the strong support of RedBird Capital and Ontario Teachers’, Compass has successfully led the wave of cloud and hyperscale data center providers in delivering just-in-time facilities customized to meet the specific requirements of our customers. This investment from our partners and the addition of the Azrieli Group, a world-class real estate developer, is an important milestone affirming the value we’re creating for our customers, as well as the significant opportunity ahead,” said Chris Crosby, CEO of Compass Datacenters. “We’re excited to accelerate our goal of developing upwards of $3 billion in new data center campuses, while continuing to enhance the value proposition we deliver to our customers.”

“This follow-on investment positions Compass to expand its growth plans significantly and scale its proven strategy in the fast-growing but highly competitive data center market,” said Jane Rowe, Executive Managing Director, Equities, Ontario Teachers’. “We’re excited to support Compass’s continued execution by focusing on innovative customer solutions, while leveraging the experience and knowledge of its talented management team.”

“The Azrieli Group has been evaluating the data center space for some time, and we have great respect for Chris and the Compass team,” added Danna Azrieli, Chairman of the Azrieli Group. “We believe in Compass’s campus-focused strategy and the opportunity to scale its growth plans around its proprietary technology. We look forward to collaborating closely with the Compass team, as well as our new investment partners RedBird Capital and Ontario Teachers’.”

Compass has made a lot of news lately. Just last week, TierPoint, a leading provider of secure, connected data center and cloud solutions at the edge of the internet, today announced plans to expand its state-of-the-art data center in North Carolina’s Research Triangle Park (RTP), in partnership with Compass Datacenters. TierPoint expects the expansion to be completed and available to clients early next year.