Data center operator Centersquare is channeling $1 billion into a major North American expansion to accommodate the rapidly growing infrastructure needs of the artificial intelligence industry. The company announced its acquisition of ten high-power data centers across the United States and Canada, a strategic move designed to provide the specialized facilities required to run power-intensive AI and machine learning workloads.
This investment underscores a critical shift in the digital infrastructure landscape, driven by the explosion in AI applications. These advanced computing tasks, which rely heavily on power-hungry graphics processing units (GPUs), demand far greater electrical capacity and more sophisticated cooling systems than traditional data centers can provide. By purchasing and upgrading these facilities, Centersquare is positioning itself as a key supplier for technology companies, from enterprises to hyperscale cloud providers, that are racing to deploy next-generation AI technologies. The expansion boosts Centersquare’s portfolio to 80 data centers, significantly increasing its capacity to support this technological wave.
A Strategic Geographic Expansion
The acquisitions, which carry a total enterprise value of $1 billion, significantly broaden Centersquare’s operational footprint in key North American markets. The ten facilities are strategically located to serve major technology and business hubs, with new sites in Boston, Minneapolis, Dallas, Tulsa, Nashville, and Raleigh in the U.S., as well as Toronto and Montreal in Canada. This geographic diversity allows the company to offer low-latency connectivity and robust infrastructure across a wider area, meeting clients where their data needs are most acute.
Two of the newly acquired sites, located in Boston and Minneapolis, were already familiar to the company, having been operated under long-term lease agreements. Their full acquisition represents a deepening of Centersquare’s commitment to these markets. According to CEO Spencer Mullee, this expansion is about more than simply increasing the company’s total number of facilities. “It reflects the growing strength and gaining momentum of our platform,” he stated. By securing these high-capacity sites, Centersquare aims to directly address and capture the surging demand for reliable and powerful digital infrastructure.
Self-Funded for Strategic Agility
In a move that distinguishes it from many of its competitors, Centersquare is self-funding the entire $1 billion transaction. The company is using its existing cash reserves to finance the acquisitions, rather than raising external capital through new debt or equity markets. This approach demonstrates a strong financial position and provides the company with greater agility and control over its growth strategy. It avoids the complexities and potential pressures that can come with external financing, allowing leadership to focus on long-term value creation and operational excellence.
This financial independence is a key advantage in the rapidly consolidating data center market. Udhay Mathialagan, CEO of Brookfield Global Data Centers and chair of Centersquare, noted that the company’s strong performance has enabled this strategic investment. Brookfield, an infrastructure investment giant, backs Centersquare’s operations and has supported its development over the past two years as it grew its customer base and revenue. “These factors position the company well to make smart, value-accretive acquisitions such as these with the benefit of high confidence levels on revenues and costs,” Mathialagan explained. This confidence allows Centersquare to make decisive moves to align its assets with market demand.
Engineering for AI’s Power Demands
The core driver of this expansion is the unique technical challenge posed by artificial intelligence. AI, machine learning, and generative AI applications require immense computational power, which is primarily supplied by banks of GPUs. These processors consume significantly more energy and generate far more heat than the central processing units (CPUs) that power traditional enterprise software. This has created a need for data centers that can handle much higher power densities—the amount of electrical power consumed per unit of physical space.
A New Class of Infrastructure
To meet this need, data center operators like Centersquare are being forced to redesign their facilities. This involves more than just supplying more electricity; it requires fundamental upgrades to cooling systems to manage the intense heat output from high-density server racks. Traditional air cooling is often insufficient, pushing the industry toward more advanced solutions. Centersquare has been strategically directing its capital toward building out and acquiring infrastructure specifically engineered for these GPU-intensive workloads, ensuring it can provide the stable, high-performance environments that modern AI applications require to function effectively and reliably.
Responding to Evolving Cloud Strategies
The investment also aligns with shifting patterns in how organizations manage their digital operations. According to Mathialagan, the market is undergoing a significant transformation. “Workloads are shifting, we’re seeing enterprises move off-premises, reconsider public cloud strategies and embrace AI-driven architectures that demand radically higher power densities,” he said. As companies re-evaluate their reliance on a single public cloud provider, many are seeking hybrid solutions or more specialized partners who can offer tailored environments for specific high-stakes workloads like AI.
This creates an opportunity for data center operators that can provide robust, secure, and highly connected facilities. Centersquare serves a wide range of customers, from individual enterprises in sectors like healthcare and finance to the hyperscale cloud providers that serve millions of users. Mullee emphasized that these customers are looking for partners that can scale with their ambitions. “We are delivering the reliable power, connectivity, and engineered environments they need to accelerate innovation,” he remarked. This expansion is a direct response to that need, providing the foundational infrastructure for the next wave of technological development.