I Squared Capital buys Cogent Fiber data centers for $225 million to expand U.S. AI infrastructure

Traders Union
All News
Financial News
I Squared buys Cogent Fiber data centers

Highlights

I Squared Capital acquired Cogent Fiber's data centers for $225 million, spanning 53 MW and 259,000 sq ft across nine U.S. markets.
I Squared will invest an additional $1 billion for upgrades, capacity expansion, and further acquisitions, citing constrained new supply in key markets.
Cogent Communications shares have dropped nearly 16% in 2026 amid sector shifts toward inference-focused facilities located closer to end-users.

U.S. data center platform takes shape

As reported by Reuters, I Squared says the acquired portfolio will serve as the seed for a new U.S. data center operating platform as demand shifts toward infrastructure positioned closer to end-users for AI inference.

The transaction covers facilities across nine U.S. markets, including Chicago, Atlanta and Houston. It includes about 53 megawatts of power capacity and roughly 259,000 square feet of colocation space.

I Squared says it will commit a further $1 billion to upgrade the sites, expand capacity and pursue additional acquisitions. Gautam Bhandari, co-founder and managing partner at I Squared Capital, says location, power and connectivity are the factors that determine long-term value, and that these facilities are in markets where new supply is severely constrained.

Inference demand reshapes sector investment

The acquisition highlights a broader shift in the data center market from large, centralized sites used for AI model training toward facilities designed to support inference workloads. That change reflects the move from systems that learn from data to those that execute tasks closer to where users need computing power.

Cogent Fiber is an indirect wholly owned subsidiary of internet service provider Cogent Communications Holdings. Shares of Cogent Communications have shed nearly 16% in 2026.

I Squared invests in and manages digital infrastructure, including data centers, and has recently expanded its presence in the sector. Last month, the investment manager agreed to acquire a majority stake in Elea, one of Brazil's largest carrier-neutral data center platforms.

Our earlier coverage of SpaceX’s Starlink and Starshield pricing dispute with the Pentagon explained how the satellite network has become central to U.S. military operations, from LUCAS drones to discussions around a direct-to-cell capability. We also noted how the Pentagon’s growing reliance on Starlink can increase SpaceX’s leverage, especially as the company pushes to lift revenue ahead of a planned IPO.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.