Company secures funds for build-out in Reno, Austin, and Chicago.
Liquid-cooled data center firm Colovore has secured almost $1 billion in new debt funding to fuel its ongoing roll-out across the US.
The company this week announced the closing of a $925 million debt facility provided by Blackstone funds.
The new financing will fast-track Colovore’s national expansion of its liquid-cooled data centers across the US. Initial expansions are planned for Reno, Nevada; Chicago, Illinois; and Austin, Texas.
“This Blackstone financing, along with the continued support of King Street, positions us well to continue scaling our footprint through the development of new liquid-cooled data centers, starting in Reno, Chicago, and Austin,” said Sean Holzknecht, president and co-founder of Colovore. “As AI infrastructure shifts rapidly toward highly distributed, inference-driven workloads, we remain focused on building the national backbone for this next phase—scalable, liquid-cooled data center platforms purpose-built for Edge and core inference.”
Launched in 2013, Colovore carved out an early niche for liquid-cooled racks capable of up to 35kW. The company opened its original single-story, 24,000 sq ft (2,230 sqm) facility in San Jose in 2014, with the last 2MW expansion announced in February 2022.
Its second San Jose site, adjacent to the first, launched earlier this year; the colocation provider's sites can now support densities up to 250kW per cabinet through a combination of rear door and direct-to-chip liquid cooling.
Previously owned by Digital Realty Trust and Silicon Valley real estate development firm Pelio & Associates, investment firm King Street acquired Colovore last year.
Brian Higgins, founder and managing partner of King Street, added: “With more than a decade of experience in liquid cooling, Colovore is uniquely positioned to provide infrastructure to meet the soaring demand for high-density, AI-optimized data centers. We look forward to further leveraging King Street’s real estate and credit capabilities to support their rapid expansion.”
King Street is a global alternative investment firm founded in 1995, managing more than $28 billion in assets across public and private markets. King Street Real Estate focuses on debt and equity investments in special situations and thematic platforms; to date, King Street has completed transactions totaling $20 billion in real estate securities and real estate-related investments.
At the time of the acquisition, the company noted plans to expand and has since detailed plans for facilities in Reno, Nevada, and Chicago, Illinois. Ground has reportedly been broken on the Reno site. Colovore also recently filed to develop a facility in the Hutto area of Austin, Texas.
Cerebras, Lambda Labs, and Cirrascale, amongst others, are known customers of Colovore.
