Investment firm KKR has agreed to acquire a stake in a portion of Compass Datacenters’ operating facilities, providing new capital to the data center developer. The transaction was first reported by Bloomberg and confirmed by Compass, although neither party has issued a formal announcement. The specific assets involved, and the size of KKR’s stake have not been disclosed yet, however, the deal is expected to raise US$ 7 billion.
According to a Bloomberg report, Compass has been considering the sale of a minority interest in some of its stabilized facilities to help fund construction of new data centers. The company is developing or operating 16 sites across the United States, Europe, and Israel.
The agreement adds to KKR existing digital infrastructure holdings. The firm co-owns CyrusOne with BlackRock’s Global Infrastructure Partners, and backs European operator Global Technical Realty. In 2023, KKR acquired a 20 percent stake in Singtel’s data center business for US$ 800 million and has been in discussions to increase that position. KKR also partnered with Mubadala last year to buy liquid cooling company CoolIT.
Compass was acquired in June 2023 by Brookfield and the Ontario Teachers’ Pension Plan for approximately US$ 5.5 billion dollars from RedBird Capital Partners and the Azrieli Group. Earlier this year, Compass sold its prefabricated data center manufacturing unit.
The agreement reflects continued capital movement into the data center sector as developers seek funding to expand capacity. Financial terms remain private.