The Midwest got some interesting data center M&A news this morning. H5 Data Centers has announced the acquisition of the Cleveland Technology Center, bringing it into Ohio for the first time.
The Cleveland Technology Center sits at 1625 Rockwell Ave between 13th Street and 17th Street in Cleveland's central business district and has some 333,215 square feet of space. The facility sits on or near a wide selection of the fiber paths between Chicago and east coast markets from Ashburn up through Boston, and benefits from low power costs of around 6 cents per kilowatt-hour. The data center was most recently owned by ByteGrid which bought the facility back in 2013 with plans to improve the property and position it as one of the area's key carrier hotels and interconnection points. Along with the facility, H5 gains an established customer base already leasing space in the building.
The move gives H5 a total of just under 1.5 million square feet of data center space spread out over 9 markets nationwide. Cleveland is their first foothold in the Midwest, joining Denver and Phoenix in the interior, Ashburn, Atlanta, and Charlotte on the east coast, and Seattle, San Jose, and San Luis Obispo out on the west coast. H5 is one of several multi-market data center companies out there that are on the prowl to enter markets like Cleveland in this manner. I expect we will hear more from H5 over the next year or two.
Financial details on the purchase were not supplied.