Global investment firm King Street Capital Management has taken a majority ownership stake in Silicon Valley-based Colovore.
Colovore specialises in liquid-cooled, high-density colocation designed for artificial intelligence (AI) and high-performance computing (HPC) workloads.
King Street aims to use its real estate expertise to support Colovore’s expansion to meet growing demand. With facilities in Santa Clara, California, and Nevada, Colovore plans to extend its presence into additional key markets across the US.
Colovore’s existing management will remain to oversee this growth. The financial details of the acquisition were not disclosed.
“The next-generation chips and power-dense platforms that support AI and other high-performance computing applications are quickly overwhelming legacy, air-cooled data centres,” said Brian Higgins, Co-Founder and Managing Partner of King Street.
“Colovore is uniquely positioned to meet the needs of these high-density customers, with a business focused exclusively on liquid-cooled data centres and over a decade of successful operating history supporting many of the leaders in the AI and HPC industries. We are thrilled to partner with the management team of Colovore and support this next phase of the company’s evolution.”
Sean Holzknecht, President and Co-Founder of Colovore, added, “Since 2012, we’ve been singularly focused on supporting the demanding and ever-increasing needs of modern, dense compute. We build our data centres from the ground up with robust liquid cooling to provide the most scalable power and cooling densities in our industry to optimise our customers’ deployments, reduce their TCO and ensure easy scalability. We look forward to working closely with our new partner King Street to quickly expand our data centre footprint and support larger and more demanding customer needs created by the explosion in AI-driven workloads.”
DH Capital, a division of Citizens, acted as the exclusive financial advisor to Colovore, with Kirkland & Ellis LLP serving as legal advisor to King Street.
