Despite the coronavirus pandemic grinding many investments to a halt, Proximity Data Centres, a regional edge colocation provider, has just picked up a £25 million investment.
ICG-Longbow, Intermediate Capital Group’s real estate asset management division, stumped up the cash, drawing from its £929 million partnership capital fund. The £25 million investment will support Proximity in the rollout of its edge computing data centres, which the company estimates will cost around £80 million.
Proximity plans on offering local colocation services from 18 regional data centres, capitalising on the rise of edge computing, where businesses are keen to process data closer to where they operate. These data centres will offer low latency and reduced transit costs, the company notes.
Kevin Crowley, managing director at ICG-Longbow, said, “We are delighted to partner with Proximity and further our track-record of investing in the data centre sector. The commitment was secured before the outbreak of Covid-19 and in light of the fast-evolving situation across the globe there is even more need for Proximity’s business model. The company has a clear vision for the future of data in the UK and an experienced management team; providing a cycle-independent, long-term business with robust fundamentals – a key attraction to ICG.”
John Hall, managing director at Proximity Data Centres, added, “We are proud to be working with Kevin and the team at ICG and look forward to utilising their knowledge and experience of scaling real estate focussed businesses. In today’s connected world, customers are demanding services faster than ever before. By investing in a network of new internet edge data centres we will empower our customers to keep up with these rising demands, enabling them to succeed in today’s digital-first era. Our partnership with ICG provides us with the financial firepower to rapidly develop our data centre portfolio.”