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Deals & Dealmakers

Madison International Realty Invests in the Recapitalization of Cologix

Madison International Realty, a leading real estate private equity firm, announced that it has invested in the recapitalization of Cologix, one of North America’s leading network-neutral interconnection and hyperscale edge data center companies. Madison’s investment is part of a total $3 billion recapitalization led by Stonepeak, an alternative investment firm specializing in infrastructure and real assets. The total transaction represents one of the largest single asset continuation vehicles raised in digital infrastructure to date.

Based in Denver, Colorado, Cologix is one of the largest private interconnection and hyperscale edge platforms in North America with a carrier-dense ecosystem of more than 600 networks, 300 cloud providers and 29 onramps. Cologix operates more than 40 digital edge and ScalelogixSM hyperscale edge data centers in 11 North American markets, providing colocation and connectivity solutions to over 1,600 customers. Earlier this year, Cologix completed a $1.65 billion asset-backed securitzation.

“We are excited to partner with Cologix and Stonepeak in this transaction,” said Ronald Dickerman, Madison International Realty Founder and President. “Cologix is well capitalized and fits our criteria as an innovative, dynamic company in the rapidly growing digital infrastructure sector, which is investing to meet the tremendous demand of the digital economy.”

“Madison’s participation will help support our ongoing growth as we move forward with our plans to develop and acquire additional digital edge and Scalelogix data centers in current and new markets across North America,” said Cologix Chairman and Chief Executive Officer Bill Fathers. “We are targeting the strategic expansion of our platform to fulfill the increasing demand from cloud and network providers as well as digital enterprises.”

“Madison is excited about the timing of our investment in the recapitalization of Cologix, given the growth prospects of the company and their commitment to ESG and sustainability initiatives,” added Kyle Torpey, Madison International Realty’s Head of US Investments.

Forecasts indicate robust growth for the data center industry. By one measure, the hyperscale data center market, which exceeded $20 billion in size in 2020, is expected to grow at a compounded annual growth rate of 15 percent from 2021 to 2027, according to data from Global Market Insights.

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