Texas-Based DartPoints Buys Metro Data Centers In Ongoing Edge Expansion

Texas-based colocation provider DartPoints says it has acquired Metro Data Centers, a data center services firm serving Central Ohio. 

DartPoints described the deal as part of its focus on edge computing, having recently announced a strategy for building out a regional data center network. DartPoints CEO Scott Willis said in August that the company plans to expand its infrastructure in secondary markets across the Southwest, Southeast, Upper Midwest and mid-Atlantic regions. 

Financial terms of the deal were not disclosed.

Metro Data Centers operates 22K SF of data center space in Ohio, and the deal is “a prime example of how we are executing on our strategy for regional growth aimed at improving interconnectivity,” Willis said in a statement. 

So-called edge data centers, which sit in smaller markets outside of major urban centers, are expected to grow significantly as rural end users consume more data.

A combination of increasing data traffic, deployment of 5G networks, and government initiatives to expand rural connectivity is creating higher demand for edge computing. The market for edge data centers is expected to grow by 25% annually over the next decade, according to P&S Intelligence. 

In May, private equity firm Astra bought a majority stake in DartPoints with the goal of acquiring more data centers and expanding the company’s edge footprint. In June, DartPoints opened up its first colocation facility in Eastern Iowa.

Overall, 2020 has been a banner year for data center deals, despite the impact of the coronavirus. According to 451 Research, there were 123 data center mergers or acquisitions in the first three quarters of this year, compared to 108 deals during the same period last year. 

The M&A boom this year has been led by acquisitions of small service providers by larger data center firms looking to expand their portfolios, according to Data Center Knowledge.