King Street Acquires Majority Interest in Colovore, a Leading Liquid-Cooled AI Data Center Operator

Transaction enables Colovore to expand significantly with King Street's differentiated capabilities in real estate

NEW YORK, May 20, 2024 /PRNewswire/ -- King Street Capital Management, L.P. ("King Street" or "the Firm"), a leading global investment firm, today announced it has acquired a majority ownership stake in Colovore, a Silicon Valley-based data center operator that specializes in liquid-cooled, high-density colocation for artificial intelligence (AI) and high-performance computing (HPC). The transaction will leverage King Street's deep real estate platform to support Colovore's continued growth to meet increased demand for liquid-cooled data center solutions. Terms of the transaction were not disclosed. The existing management team of Colovore will remain in place to rapidly expand the business.

"The next-generation chips and power-dense platforms that support AI and other high-performance computing applications are quickly overwhelming legacy, air-cooled data centers," said Brian Higgins, Co-Founder and Managing Partner of King Street. "Colovore is uniquely positioned to meet the needs of these high-density customers, with a business focused exclusively on liquid-cooled data centers and over a decade of successful operating history supporting many of the leaders in the AI and HPC industries. We are thrilled to partner with the management team of Colovore and support this next phase of the company's evolution."

Mark Van Zandt, Co-Head of Real Estate at King Street, added, "King Street's data center investment platform is an extension of the Firm's thematic approach to global real estate investing. Working in close coordination with our colleagues in the technology and energy sectors, we bring a comprehensive and differentiated perspective to the data center industry and look forward to working with Colovore to capitalize on this rapidly evolving investment opportunity."

With locations in Santa Clara, California and Nevada, Colovore plans to quickly scale into additional Tier 1 markets across the country under King Street's sponsorship.

Sean Holzknecht, President and Co-Founder of Colovore, stated, "Since 2012, we've been singularly focused on supporting the demanding and ever-increasing needs of modern, dense compute. We build our data centers from the ground up with robust liquid cooling to provide the most scalable power and cooling densities in our industry to optimize our customers' deployments, reduce their TCO and ensure easy scalability. We look forward to working closely with our new partner King Street to quickly expand our data center footprint and support larger and more demanding customer needs created by the explosion in AI-driven workloads."

"We founded Colovore to allow engineers from Fortune 500s to startups to seamlessly create successive waves of innovation in compute-intensive and AI-oriented services," said Peter Harrison, Chief Technology Officer and Co-Founder of Colovore. "Our partnership with King Street will expand our platform to many additional markets, and together we will continue to transform the data center industry and enable these emerging technologies and applications to thrive."

DH Capital, a division of Citizens, served as exclusive financial advisor to Colovore. Kirkland & Ellis LLP served as legal advisor to King Street.

About King Street
King Street is a global alternative investment firm founded in 1995 that manages more than $25 billion in assets across public and private markets. The firm marries rigorous fundamental research with tactical trading and differentiated sourcing capabilities to identify misunderstood and complex investment opportunities across asset classes, up and down the capital structure. King Street has a long history of investing in real estate via an opportunistic strategy focused on special situations and select high conviction themes. For more information, please visit www.KingStreet.com or email [email protected].

About Colovore
Colovore is a leading provider of liquid-cooled, high power density colocation services designed to natively support next-gen compute and AI infrastructure at scale. Founded in 2012, Colovore provides the most robust, scalable, and cost-efficient data center solutions for customers ranging from Fortune 500 enterprises to Silicon Valley startups.

Media Contact
Prosek Partners for King Street
[email protected] 

SOURCE King Street Capital Management