Rogers will continue to sell data center services on behalf of InfraRed and provide network connectivity to the sites
Canadian telecom operator Rogers Communications has signed a definitive agreement to sell its portfolio of nine Rogers Business data centers to infrastructure asset manager InfraRed Capital Partners, part of Canadian-based Sun Life, the former said in a release.
The Tier 2 and 3 data centers, located across key Canadian cities, provide a combined capacity of up to 49 MW. The sale excludes Rogers’ corporate data centers used for internal network and IT operations.
As part of the agreement, the carrier will continue to sell data center services on behalf of InfraRed and provide network connectivity to the sites. Both companies said they will work together to ensure a seamless transition for existing customers.
InfraRed, which manages $13 billion in equity capital and has investments in European data center firm Nexspace and various telecom tower assets, said in a separate release that the acquisition aligns with its strategy to expand in high-demand digital infrastructure markets.
Pilar Banegas, partner at InfraRed, said: “This investment represents an exciting opportunity for us to drive value in an established business, capitalizing on the rising demand for secure and reliable data centre services, within one of the most attractive segments of the Canadian digital infrastructure market.
The transaction forms part of the telco’ broader plan to divest real estate and other non-core assets, with proceeds directed toward debt repayment. The transaction is expected to close by the end of 2025, subject to regulatory approval.
In April, Rogers had struck a deal with an investor group led by Blackstone, in which Blackstone will buy a stake in Rogers’ wireless backhaul network in exchange for billions that Rogers will use to reduce its debt.
Blackstone said it was acquiring a non-controlling stake in a new Canadian subsidiary which Rogers is forming, which will essentially monetize the operator’s wireless backhaul network to the tune of CAD$7 billion (US$4.93 billion).
The operator said it was maintaining “full operational control” of its network. Blackstone will hold a 49.4% equity interest in the subsidiary, but only a 20% voting interest. Rogers, meanwhile, will hold 80% of the voting interest and 50.1% of the equity interest.
