The deal includes 10 facilities across nine U.S. markets, with plans to invest an additional $1 billion in upgrades and expansions.
Investment firm I Squared Capital has purchased 10 data center facilities from Cogent Fiber for $225 million in cash, targeting growth in AI infrastructure. The acquisition spans nine U.S. markets, including key cities like Chicago and Atlanta, and includes 53 megawatts of power capacity and 259,000 square feet of colocation space.
The deal reflects a broader industry shift toward smaller, edge-based data centers optimized for AI inference rather than large, centralized facilities used for model training. I Squared plans to use the assets as a foundation for a new U.S. data center platform, committing an additional $1 billion for future upgrades and acquisitions.
Cogent Fiber, a subsidiary of Cogent Communications Holdings, has seen its shares decline nearly 16% in 2026. The transaction underscores the increasing demand for strategically located data centers with strong power and connectivity infrastructure.