Element Critical Launches New US Data Center Platform Backed by Major Investors
December 19, 2025
In a significant move within the competitive digital infrastructure landscape, US data center operator Element Critical has launched a new national platform, securing substantial backing from a consortium of prominent investment firms. The announcement underscores the intense capital influx and strategic partnerships driving expansion to meet soaring demand from artificial intelligence, cloud computing, and enterprise digital transformation.
The new platform is seeded by the recapitalization of two existing enterprise data centers in Houston and Austin, Texas, which are currently owned by Safanad and managed by Element Critical. These facilities will serve as the anchor assets for the venture. The platform is financially backed by a powerful investor group comprising 26North Partners, Arctos, Mercuria, and existing stakeholder Safanad. This partnership aims to accelerate acquisitions, development, and strategic expansion across top-tier US markets.
Element Critical CEO Ken Parent stated, “Through this investment and data center acquisition strategy, Element Critical will be well-positioned to support the needs of leading clients in technology, financial services, healthcare, energy, and Fortune 500 companies. These Texas facilities will anchor our expansion into other top US markets.” The company, founded in 2014, also operates a facility in Chicago and recently began work on a 10-megawatt expansion at its Houston site.
The investor group brings considerable scale and diverse expertise. 26North, launched in 2022 by Apollo Global Management co-founder Josh Harris, manages approximately $32 billion in assets. Harris noted, “Digital infrastructure is precisely the kind of opportunity our next-generation alternatives firm was built to pursue. As AI, energy, and data converge, we see an opportunity to support platforms with strong fundamentals and durable demand.”
Safanad, which first invested in Element Critical in 2016, sees the new platform as a logical next step. “We are proud to launch this next phase of Element Critical with partners who share our conviction in digital infrastructure and the evolution driven by AI,” said Safanad founder and CEO Kamal Bahamdan. The partnership also includes Arctos, a private investment firm with a focus on real assets, and Mercuria, a global energy and commodities group.
Brian Falik, Mercuria’s chief investment officer, highlighted the convergence of energy and digital needs: “The intersection of AI, data, and energy is reshaping infrastructure demands. Our investment reflects Mercuria’s commitment to supporting digital infrastructure with innovative energy solutions.”
The launch signals a strategic consolidation of capital and assets aimed at capturing a larger share of the rapidly growing US data center market. It reflects a broader industry trend where specialized operators are partnering with deep-pocketed financial and strategic investors to fund the massive capital expenditures required for new builds and acquisitions, particularly in power-constrained markets facing unprecedented demand from AI workloads.
Source: datacenterdynamics
Element Critical Launches New US Data Center Platform Backed by Major Investors
