Private Equity Firm King Street Capital Management Acquires Data Center Operator Colovore

Private equity firm King Street Capital Management has made a significant move in the technology sector by acquiring data center operator Colovore. The deal, which was finalized for an undisclosed sum, marks a strategic expansion for both companies.

Colovore, based in Silicon Valley, specializes in liquid-cooled, high-density colocation for artificial intelligence (AI) and high-performance computing (HPC). With a focus on cutting-edge technology, the company has positioned itself as a leader in the industry.

On the other hand, King Street Capital Management, founded in 1995 and headquartered in New York City, brings a wealth of expertise in credit, restructurings, real estate, and more. With a team of 222 employees, the firm is well-equipped to support Colovore’s growth and expansion plans.

Speaking about the acquisition, Mark Van Zandt, co-head of Real Estate at King Street, highlighted the firm’s commitment to leveraging its real estate platform to drive Colovore’s growth. Brian Higgins, Co-Founder and Managing Partner of King Street, emphasized Colovore’s unique position in meeting the needs of high-density customers with its focus on liquid-cooled data centers.

As part of the expansion plans, Colovore intends to enter additional Tier 1 markets across the country with the backing of King Street. This strategic move is expected to further solidify Colovore’s position in the industry and drive its growth trajectory.

The acquisition was facilitated by DH Capital, a division of Citizens, serving as exclusive financial advisor to Colovore, and legal advisor Kirkland & Ellis LLP representing King Street. This deal adds to the growing number of technology mergers and acquisitions in 2024, highlighting the dynamic nature of the industry.