Brookfield takes stake in Canadian firm.
Canadian data center group 5C has secured new funding to fuel its data center build-out in the US.
The company this week announced that it has successfully secured $835 million, including equity financing led by Brookfield Asset Management and debt financing led by Deutsche Bank.
“5C is positioned to play a pivotal role in the AI revolution, and we are excited to welcome Brookfield as a strategic partner in our journey,” said Jonathan Ahdoot, 5C CEO.
“With this investment, we will accelerate the deployment of next-generation AI factories, delivering scalable infrastructure that can meet the needs of AI-driven industries. We look forward to working with Brookfield to drive the future of AI at scale and with speed.”
Brookfield is investing through its Infrastructure Structured Solutions strategy, alongside affiliated entities. The capital will accelerate the development of 5C’s upcoming data centers across North America.
“5C is exceptionally well-positioned to capitalize on the next wave of infrastructure needs driven by AI,” added Hamish Kidd, managing director in Brookfield’s Infrastructure business. “We’re excited to support the company’s growth, and partner with its outstanding leadership team, to scale its platform across key markets.”
5C was launched in 2023 and is based in Montreal, Canada. Recently acquired by Hypertec and merged with its cloud division, the company is developing facilities in Ohio, Arizona, North Carolina, and Tennessee that could reach 2GW at full build-out. Expansion into Europe is also planned to support AI firm Together AI.
Fred Rosenberg, head of US private credit & infrastructure at Deutsche Bank, said: “Digital infrastructure lending is critically important in today’s environment. Our partnership with 5C Group reflects a long and fruitful relationship, and our shared commitment to driving innovation and supporting the next generation of digital infrastructure and AI.”
Founded in 1984 as an IT systems and system manufacturing business, 5C-owner Hypertec previously had a data center business – Hypertec DCS – which was sold to Vantage in 2020.
Hypertec then acquired Cloud.co in 2021 and relaunched it as Hypertec Cloud, which has now been merged with 5C. The cloud unit says it is offering services from 12 owned and colocation facilities globally.
With more than $1 trillion in assets under management, Brookfield Asset Management is one of the largest investment firms in the world. The company has stakes in a number of data center and tower firms – including Centersquare and Compass in the US, Data4 in Europe, Ascenty in Latin America, Digital Connexion in India, and DCI in Australia – and is a major investor in energy infrastructure supporting the industry.
Moelis & Company LLC acted as financial advisor and placement agent to 5C, with Osler, Hoskin & Harcourt LLP serving as its legal counsel. Simpson, Thacher & Bartlett LLP served as legal counsel to Brookfield. Milbank LLP served as legal counsel to Deutsche Bank.
