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
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
ONEOK Offers $7B in Notes to Fund EnLink, Medallion Midstream Deals
2024-09-11 - ONEOK intends to use the proceeds to fund its previously announced acquisition of Global Infrastructure Partners’ interest in midstream companies EnLink and Medallion.
Dividends Declared the Week of Oct. 21
2024-10-25 - With third-quarter 2024 earnings underway, here is a compilation of dividends declared from select midstream and service and supply companies in the week of Oct. 21.
Dividends Declared (Sept. 30 - Oct. 11, 2024)
2024-10-11 - Here is a compilation of dividends and distributions declared from select upstream, midstream and service and supply companies from Sept. 30 to Oct. 11.
Dividends Declared Sept.16 through Sept. 26
2024-09-27 - Here is a compilation of dividends declared from select upstream, midstream and service and supply companies.
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.