There has been a steady drumbeat of significant M&A in the colocation sector, and this morning we have another to consider. H5 Data Centers has announced the acquisition of the NextFort data center just outside Phoenix in Chandler, Arizona.
The NextFort facility features some 180,000 square feet made up of private suites with up to 225KW of power each, and just opened its doors two years ago. Just a fraction of that space has yet been built out fully and sold to a mostly retail customer base. H5 Data Centers will be taking the facility more in the wholesale, large enterprise direction as is their usual practice.
Last Summer H5 expanded into Ashburn by acquiring a property there, and with the new Phoenix facility they are now in 8 markets with over a million square feet of space. I suspect we will be hearing about further acquisitions in 2016. They have been focusing on the major US hubs, and I'd speculate the next purchases will get them into one or more of the hubs they aren't in yet: New York/New Jersey, Chicago, or southern California.
Financial terms for the NextFort purchase were not supplied.