Serverfarm Enters Texas Market with Strategic Acquisition and Sustainable Modernization Plans
Serverfarm, a leading global data center developer and operator, has completed the acquisition of two significant data center campuses in Houston, Texas, marking its entry into this high-demand market. This acquisition expands Serverfarm’s colocation capabilities across the United States and aligns with its commitment to sustainable and innovative data center solutions.
Strategic Acquisition and Investment
The acquisition includes two key data center facilities, known as HOU1 and HOU2, which are positioned to deliver substantial near-term capacity through the sustainable modernization of pre-existing structures. The transaction was financed with equity commitments from Manulife Investment Management, representing Manulife Infrastructure Fund II, Manulife Infrastructure Fund III, and its affiliates, which are Serverfarm’s majority shareholders, along with contributions from other minority investors. The deal was exclusively advised by CBRE Data Center Capital Markets.
Innovative Approach to Data Center Modernization
Serverfarm’s expertise in adaptive reuse and infrastructure modernization will play a crucial role in rapidly scaling the HOU1 and HOU2 campuses to meet the needs of the high-demand Houston market. The first phase of one campus is already pre-leased to a major customer, with both campuses generating substantial interest from hyperscalers and other technology companies.
“Serverfarm’s approach to providing near-term capacity addresses hyperscale customer needs in a sustainable and future-proof manner,” said Avner Papouchado, CEO of Serverfarm. “Our entry into the Houston market with this acquisition is our largest data center investment to date and underscores our commitment to serving our customers effectively.”
Growing Importance in the Digital and Energy Sectors
Houston, the 7th largest metropolitan economy in the United States, with a population of 7.3 million and a GDP exceeding $630 billion, is a key hub for digital and energy transformation. The city’s central location, skilled workforce, robust energy infrastructure, and favorable business regulations make it a strategic market for data center expansion.
Capacity and Development Plans
The HOU1 data center facility currently offers 350,000 sq ft of space, with a line-of-sight capacity of 410MW. The HOU2 campus covers nearly half a million sq ft across two buildings and is set to scale up to 100MW using available grid power. Serverfarm’s phased development plan will focus on maximizing capacity within the existing building shells before undertaking future expansion. Both campuses are situated on a combined 250 acres and feature on-site substations with additional unused capacity, positioning Serverfarm to meet the Houston metro’s data center demands at an unprecedented scale.
Transformative Opportunity
“This acquisition represents a transformative opportunity for Serverfarm, showcasing our development capabilities and ability to deliver rapid market entry for hyperscale customers in prime metro locations,” said Recep Kendircioglu, Global Head of Infrastructure at Manulife Investment Management. “We are excited about this acquisition as it enhances Serverfarm’s presence in the United States and supports the growth of our portfolio companies.”
The purchase of these data centers underscores Serverfarm’s commitment to growing its presence in the U.S. market and its dedication to delivering state-of-the-art, environmentally sustainable data center solutions.
