4 Houston Data Centers Sold To Dallas Company In $670M Deal

DataBank Holdings will buy four Houston-area data centers for $670M.

The Dallas-headquartered data center company is acquiring Houston West I, Houston West II and Houston West III, as well as a Galleria data center, all from CyrusOne as CyrusOne sheds assets as part of its $15B acquisition by investment firm KKR and Global Infrastructure Partners, announced in November.

Each center is over 100K SF and several are targeted toward the oil and gas industry. Houston West II and Houston West III are yet to be completed, but the latter will be the largest of the centers, at 640K SF.

The transaction positions DataBank as the city's largest independent data center provider, the company said, adding upward of 300K SF of raised-floor data center capacity and 42.5 megawatts of installed critical IT load.

DataBank noted the Houston West Campus is the region’s primary interconnection point, with more than 30 fiber networks, 3,500 cross-connects and public cloud on-ramps from AWS and Google.

“We are excited to add the high-growth Houston market to DataBank’s portfolio, marking a significant milestone in our expansion efforts as we enter into our 27th metro area and add to what is already the largest edge infrastructure footprint in the United States,” DataBank CEO Raul Martynek said in a release. “We look forward to providing the businesses and people in this important community with best-in-class digital infrastructure.”

The transaction is being funded by an investor group led by DigitalBridge, DataBank’s controlling shareholder. 

DataBank did not previously operate any Houston data centers, although it has a strong Texas presence, including seven data centers in the Dallas-Fort Worth area and facilities in Austin and Waco. When the transaction closes late this year, DataBank’s total portfolio will include more than 65 facilities and 2M SF of raised-floor data center capacity.

CyrusOne will lease back from DataBank the Houston West III shell to support a lease signed in the fourth quarter of 2021.