Grain Management Invests in Controlling Shareholder of Prime Data Centers

Grain Management Invests in Controlling Shareholder of Prime Data Centers

April 9, 2026

In a move highlighting the continued investor appetite for digital infrastructure assets, private investment firm Grain Management has completed a significant preferred equity investment in Data Realty Holding Corp., the founding and controlling shareholder of data center platform Prime Data Centers. The deal underscores the strategic capital required to fuel expansion in an industry grappling with surging demand from cloud computing and artificial intelligence workloads.

While the full financial terms were not disclosed, the investment provides structured, long-term capital aimed at optimizing Prime's capital structure. This positions the platform for its next phase of growth, both within its existing footprint and in pursuit of new development opportunities. Prime boasts a substantial pipeline, with 7 gigawatts of operational and planned capacity spanning key markets in the United States and Europe, including Chicago, Phoenix, Austin, Silicon Valley, Frankfurt, and Madrid.

Nicholas Laag, founder and CEO of Prime Data Centers, welcomed the partnership, stating, "Given Grain's sector expertise across the digital infrastructure landscape and long-standing relationship with Prime, I am pleased to welcome them as a partner. This partnership represents a crucial step in Prime's continued growth." Prime's investor base also includes institutions such as Macquarie Capital, Ares Management, and Siemens Financial Services.

For Grain Management, a firm founded in 2007 with approximately $12 billion in assets under management, this investment aligns with its focused strategy on communications infrastructure. The firm's portfolio includes stakes in data center, fiber, tower, and spectrum companies. Raghav Nayar, managing director and co-head of US Investments at Grain, commented, "Prime has built a differentiated platform at the intersection of accelerating cloud and AI demand, and our ability to engage directly and structure a tailored investment underscores the advantages of a focused, sector-driven approach."

The transaction involved several major financial and legal advisors. Kirkland & Ellis LLP served as legal counsel and TD Securities as financial advisor to Grain. Prime was advised by Guggenheim Securities and Moelis & Company as joint financial advisors, with Simpson Thacher & Bartlett LLP acting as legal counsel.

Source: datacenterdynamics