CPPIB and Equinix Forge $4 Billion Acquisition of Nordic Data Center Operator atNorth
In a landmark transaction that underscores the booming demand for data infrastructure, the Canada Pension Plan Investment Board (CPPIB) and global data center giant Equinix Inc. have jointly agreed to acquire atNorth Holding AB, a prominent pan-Nordic data center operator. The deal, valued at a substantial US$4 billion including debt, was officially confirmed in a statement released on Friday, validating earlier reports from Bloomberg News.
Investment Structure and Strategic Rationale
Under the terms of the agreement, CPPIB will invest approximately US$1.6 billion, securing roughly 60% ownership of atNorth. Equinix will hold the remaining stake, positioning both entities to capitalize on the rapidly expanding data center market. This acquisition comes at a time when private equity firms and infrastructure investors are aggressively channeling funds into data centers, driven largely by the explosive growth of artificial intelligence and cloud computing technologies.
James Bryce, head of infrastructure at CPP Investments, emphasized the long-term viability of this sector in an interview, stating, "There's long-term demand that underpins data centers, driven by enterprise and cloud demand, plus the growth of agentic AI and training. We have high conviction this will continue."
atNorth's Operational Footprint and Growth Trajectory
Headquartered in Iceland, atNorth operates eight fully functional data centers and has several additional sites currently under development across Denmark, Finland, Iceland, Norway, and Sweden. This extensive Nordic presence provides a strategic advantage in a region known for its cool climate and renewable energy sources, which are critical for efficient data center operations.
The company was previously acquired by Swiss alternatives firm Partners Group in 2022 for an undisclosed amount. In a separate statement, Partners Group revealed that this sale will yield a 2.5x multiple on the capital invested for its clients. Esther Peiner, head of private infrastructure at Partners Group, noted that the firm plans to maintain some exposure to atNorth's future growth, "This business has the potential to grow 4-5x over the next five years, and we intend to retain some exposure to the business by co-investing alongside CPPIB."
Market Context and Competitive Landscape
The data center industry has become a focal point for investment as AI advancements and digital transformation accelerate globally. This transaction highlights the intense competition for prime assets, with Bloomberg News previously reporting that Digital Realty Trust Inc. was also among the bidders for atNorth. The deal is expected to be immediately accretive to Equinix's adjusted funds from operations upon completion, further strengthening its market position.
This acquisition not only reflects the strategic priorities of CPPIB and Equinix but also signals a broader trend of consolidation and investment in critical digital infrastructure. As organizations worldwide increasingly rely on data-intensive applications, the demand for secure, scalable, and sustainable data center solutions continues to surge, making such investments pivotal for long-term growth and technological advancement.
