DataBank, an edge data center colocation provider, has purchased four data centers in Houston from CyrusOne, a high-density colocation service provider for energy companies, for USD 670 million. The transaction is anticipated to close in late Q1 2022 and is subject to regulatory approvals.

This deal will enable DataBank to expand its operational presence to Houston, which will become the 27th US market for the company, and strengthen its presence in Texas (which currently includes seven data centers in the Dallas/Fortworth area, Austin, and Waco).

The four data centers will add over 300,000 square feet (sq ft) of raised-floor data center capacity (bringing its total to around 2 million sq ft) and 42.5 MW of critical IT load, and brings along several large customers from the healthcare, financial, energy, media, and software industries in the area.

One of the four data centers is the Houston metro's primary interconnection point with over 30 fiber networks, 3,500 cross-connects, and public cloud on-ramps from AWS and Google. The company also stated that most of the area of these new data centers will be dedicated to colocation services.

Analyst QuickTake: This shows Databank’s strategy continuing toward inorganic growth through acquisitions. Since 2014, DataBank has acquired more than five companies involved in providing edge data centers and cloud services. In December 2020, the company acquired the “zColo” data center assets from the Zayo Group Holdings, to offer services in 60 facilities (it currently has over 65 facilities).