ASB Merges Two Leading Data Centers to Form National Data Center Operator
- Oct 08, 2014
ASB Real Estate Investments has formed Infomart Data Centers, a national data center operator that rises out of a merger between Dallas Infomart and Fortune Data Centers.
The new entity will manage 2.2 million square feet of space owned in ASB’s Allegiance Real Estate Fund, a $3.9 billion core real estate vehicle.
John Sheputis, who formerly led Fortune Data Centers, will serve as president of Infomart Data Centers, joined by the former Fortune’s management team.
“We’ve been working on this for a couple of years and it’s a very significant, new initiative for us, and required putting together the right people and great people, and being able to put all our assets together under one umbrella,” Robert Bellinger, ASB’s president & CEO, told Commercial Property Executive. “It took a lot of work and we didn’t want to launch it until we were 100 percent ready.”
DCD Intelligence forecasts the data center market will increase 4 percent to $156 billion in 2014, fueled by the growing IT capacity requirements combined with reduced budgets and the need to access new technologies. As the industry moved away from the fragmented and local business to become a more national and centralized business, ASB decided now was the right time to move forward with its plans.
“Tenants today want multiple locations across the country and the appeal of getting that from one provider is valuable,” Bellinger added. “They really care about the financial strength of their landlord, and in my experience, no one cares more than technology centers. This business is so dependent on liability—they can never go down, and they want to know that their landlord has the resources (capital and organizational depth) available.”
Moving forward, Infomart Data Centers will operate the Dallas Infomart, one of the nation’s largest data center/technology offices and one of the world’s most inter-connected buildings, as well as facilities in San Jose, Portland Ore., and a new fourth facility in Ashburn, Va.
“We’re now combining everything into one platform; one management team, one leasing team, and a tenant who signs a lease in San Jose can use the same lease form and talk to the same people about signing a lease in Dallas,” Bellinger concluded. “The kind of reliability they demand in San Jose, they know they will get. They also know we have a very substantial balance sheet and very low debt (at 18 percent), so we have tremendous resources as far as cash flow and the ability to maintain the properties in the standards people are looking for.”
With more than 2.2 million square feet of wholesale data center and office space and 100 megawatts of available power, Infomart Data Centers will serve the IT needs of some of the most trusted U.S. brands, which span industries in networking, banking, gaming, Internet hosting, and government.