Manulife Investment Management agreed to buy a controlling interest in data center operator Serverfarm, owner of multiple centers in the United States and globally.
The definitive agreement comes as the rapid adoption of new artificial intelligence apps is helping to drive investment in and double-digit growth for the data center industry.
Manulife’s investment on behalf of its Manulife Infrastructure Fund II will accelerate global expansion of Serverfarm's portfolio, the Toronto-based financial service firm said without disclosing the value of the investment. The acquisition will provide capital to Serverfarm to continue its expansion across North America, Europe and Israel.
“Serverfarm has built a high-quality data center portfolio and growth platform that is well-positioned to capitalize on the strong secular tailwinds in the data center market," Recep Kendircioglu, global head of infrastructure, Manulife Investment Management, said in a statement.
Manulife and Serverfarm did not immediately respond to a request for additional information on the agreement and plans for expansion.
Los Angeles-based Serverfarm currently operates a portfolio of eight data centers across North America, Europe and Israel that total more than 1.5 million gross square feet and has secured additional land for future data center developments.
In the United States, Serverfarm owns data centers in the Atlanta, Chicago, Seattle and Los Angeles markets. Its tenants include such firms as Google, AT&T, Amazon, Amdocs, Verizon and Century Link.
The deal is expected to close in the third quarter.
Serverfarm is privately held by the Red Sea Group, a Israel-based real estate development company.
Manulife Infrastructure Fund II completed fundraising in November 2021 at $4.65 billion in committed capital. The fund was the largest Manulife Investment Management had raised at the time.
This story was updated May 25 to display a photograph involved in the deal and correct the location of Red Sea Group.