Centersquare Announces US$1bn Expansion to Support the AI Boom

In a strategic move to meet the voracious demands of the artificial intelligence boom, data center operator Centersquare has announced a US$1 billion expansion across North America. The investment involves the acquisition of ten high-power data centers in the United States and Canada, significantly bolstering the company's capacity to support the high-density computing workloads essential for AI applications.


This major expansion increases Centersquare's portfolio to 80 facilities, solidifying its position as a key player in the data infrastructure landscape. The newly acquired data centers are strategically located in key markets, including Boston, Minneapolis, Dallas, Tulsa, Nashville, Raleigh, Toronto, and Montreal. Two of the facilities, located in Boston and Minneapolis, were previously under long-term lease agreements.



The move comes as the AI industry's explosive growth fuels an unprecedented need for robust, high-performance data center infrastructure. AI and machine learning applications, particularly generative AI, rely on powerful graphics processing units (GPUs) that consume significantly more power and generate more heat than traditional computing hardware. This requires data centers with advanced cooling systems and the ability to handle higher power densities.


Spencer Mullee, CEO of Centersquare, emphasized that the acquisitions are "more than just volume growth," reflecting the "growing strength and gaining momentum of our platform." He added, "By adding capacity in strategic markets, we are positioning Centersquare to capture the surging demand for trusted, high-performance infrastructure."


A notable aspect of this billion-dollar transaction is that it is self-funded by Centersquare, utilizing existing cash reserves rather than external financing. This financial maneuverability allows the company to be agile in a rapidly evolving market.

Udhay Mathialagan, CEO of Brookfield Global Data Centers and Chair of Centersquare, highlighted the shifting landscape of enterprise computing. "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 stated.


Centersquare, formed from the merger of Evoque Data Center Solutions and Cyxtera Technologies, is focusing its investments on infrastructure capable of supporting these GPU-intensive workloads. The company's expansion is a direct response to the needs of its diverse clientele, which ranges from individual enterprises to hyperscale cloud providers, all seeking reliable and scalable infrastructure to fuel their AI-driven innovations. This billion-dollar investment underscores the critical role of data centers as the backbone of the burgeoning AI economy.