July 20, 2021
Mary Zhang
Netrality Data Centers, an interconnection-focused data center operator in the United States, backed by Macquarie Infrastructure and Real Assets (MIRA), today announced the acquisition of Indy Telcom Center, an interconnection hub in Indianapolis, Indiana. Following this acquisition, Netrality Data Centers will own and operate carrier hotels in six markets throughout the United States.
Indy Telcom Center – Overview
Indy Telcom Center owns 11 buildings comprising ~205k sqft, on a 9-acre campus, which together form the most densely interconnected location in the Indianapolis market. Specifically, these buildings serve wholesale & powered shell tenants and fiber customers.
Indy Telcom Center provides interconnection and colocation to companies that require low-latency data processing throughout the Midwest. For example, DataBank, a portfolio company of DigitalBridge, leases two facilities at Indy Telcom Center, which together comprise 9.5 megawatts of installed power supply and 56.0k gross sqft.
Connectivity
Indy Telcom’s campus has points-of-presence (PoPs) from 13 metro (intra-city) and 7 long-haul (inter-city) network operators. Specifically, these service providers include Lumen Technologies, Crown Castle, Telia Carrier, Windstream, Zayo and, US Signal.
Indy Telcom’s Midwest location enables the campus to provide connectivity to many important Midwest cities including Chicago, St. Louis, Columbus, Kansas City, and Pittsburgh. In turn, this makes the site an important data center for telecom companies and enterprise customers.
Netrality Data Centers – Overview
Netrality owns and operates interconnection-focused data centers and meet-me room facilities. Specifically, the company provides a mix of carrier-neutral colocation, powered shell, and wholesale data center services. Netrality’s value proposition is enhanced by its dense fiber connectivity and network-rich interconnection ecosystem.
Overall, Netrality has 3+ million sqft and 100+ megawatts of power capacity across seven data centers in six U.S. markets:
- St. Louis, Missouri: 210 North Tucker Boulevard and 900 Walnut Street
- Kansas City, Missouri: 1102 Grand Boulevard
- Houston, Texas: 1301 Fannin Street
- Philadelphia, Pennsylvania: 401 North Broad Street
- Chicago, Illinois: 717 South Wells Street
- Indianapolis, Indiana: 600 Kentucky Avenue (Netrality’s acquisition of Indy Telcom Center)
Competitors
Netrality Data Centers’ main interconnection-focused competitors include scale operators such as Equinix and CoreSite Realty, as well as emerging providers including Cologix and DataBank (following its acquisition of zColo).
Equinix has the greatest number of interconnections at 399k, which includes both physical cross connects and virtual interconnections. Whereas CoreSite and DataBank each have ~30k interconnections.
Additionally, Cyxtera Technologies has a total of 40k interconnections. However, Cyxtera’s cross-connects make-up a materially lower proportion of their revenue, as compared to their more interconnection-focused peers.
Ownership
Netrality is a portfolio company of MIRA’s Macquarie Infrastructure Partners IV fund, which has $5bn in equity capital commitments. Notably, MIRA’s Macquarie Infrastructure Partners funds also own Aligned Energy, which is a data center operator focused on the hyperscale segment.
Transaction Advisors – Netrality Data Centers and Indy Telcom Center
Macquarie’s Netrality Data Centers used legal advisor Kurtz & Revness for the Indy Telcom Center acquisition.
Indy Telcom Center’s legal advisor was Blackwell, Burke & Ramsey.