Morgan Stanley Infrastructure Partners (MSIP) is backing data center developer Flexential, alongside existing investor GI Partners. (Source: Shutterstock.com)
Morgan Stanley Infrastructure Partners (MSIP) is investing in data center developer Flexential as demand for AI and high-performance computing grows.
MSIP is partnering with existing investor GI Partners “to accelerate Flextential’s growth and to support its mission to meet increasing demand for digital infrastructure,” the companies said Oct. 21.
Flexential owns a network of over 40 data centers and 325 megawatts of capacity built or in development across the U.S.
The company is “poised for significant growth from enterprise digital transformation, cloud adoption and the emerging needs of hyperscale and AI workloads,” Flexential said.
Players along the entire energy value chain—from upstream gas producers to infrastructure developers—see opportunity for growing demand to fuel AI and other forms of energy-sucking computing.
Producers argue that future data center projects should be sited in geographies with access to low-cost natural gas, like Appalachia or the Permian Basin.
RELATED
EQT’s Rice: Three Mile Island Restart Not ‘Needle-Mover’ vs. Natgas
“We believe Flexential's robust next-generation infrastructure, commitment to innovation, and proven leadership in the industry make it well-positioned to capitalize on market opportunities,” said Christopher Ortega, MSIP’s head of Americas.
MSIP will invest in the common equity of Flexential as a co-control investor alongside GI Partners. The two firms will provide “a substantial amount of primary capital to fund continued expansion and growth,” per the announcement.
The transaction is expected to close in the fourth quarter.
Kirkland & Ellis LLP acted as legal counsel to MSIP. Citi acted as lead financial advisor for MSIP; Evercore also served as financial advisor.
Flexential was represented by Ropes & Gray LLP as legal counsel. Goldman Sachs served as exclusive financial advisor to Flexential and GI Partners.
Recommended Reading
High Court Hears Potentially Influential Uinta Basin Case
2024-12-11 - U.S. Supreme Court justices heard arguments over a Utah railroad that could have big implications for the energy sector’s adherence to environmental requirements.
Sable Offshore Plans Restart of Subsea Pipeline After 2015 Shutdown
2024-10-08 - Sable Offshore Corp. says the permits needed to begin operations on the Santa Ynez line offshore California, which shut down due to an oil leak in 2015, are not yet in place.
As Midstream Wobbles on IRA and ESG, a New Trend Opens Up for Sector
2024-10-08 - Enthusiasm for the Inflation Reduction Act (IRA) and ESG in the midstream sector is waning. Players are turning to a new trend—asset-backed securitization.
First Permits for Enbridge’s Line 5 Re-Route Issued in Wisconsin
2024-11-15 - Wisconsin’s Department of Natural Resources approved an environmental plan to move Enbridge’s Line 5 pipeline’s path off of a tribal reservation.
Vivakor Expands Crude Gathering Network in Oklahoma STACK
2024-11-25 - Midstream company Vivakor is building its network following the October acquisition of Endeavor Crude.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.