RadiusDC Enters Data Center Market with Acquisition of PhoenixNAP's Facility

RadiusDC Expands Its Footprint with the Acquisition of PhoenixNAP's Phoenix Data Center

In a strategic move that underscores its ambition in the rapidly growing data center market, RadiusDC announced on March 12, 2026, that it has reached a definitive agreement to acquire PhoenixNAP's data center and colocation business located in Phoenix, Arizona. This acquisition is not just a purchase; it's a foundational step towards establishing a larger presence in one of the country's most vital connectivity markets.

What the Acquisition Entails

The transaction, anticipated to finalize in the second quarter of 2026 pending standard regulatory approvals, encompasses the existing facilities and infrastructure of the Phoenix colocation center. Moreover, it grants RadiusDC significant development rights for future expansions at the site. This marks the inception of the RadiusDC's Phoenix I campus.

Initially, RadiusDC plans to enhance operational capacity by adding DC1, which will bring 8 megawatts of IT power online. Furthermore, the company has ambitious plans for DC2, which will support an additional 18 megawatts as the first phases become operational in the first half of 2028. When fully realized, these expansions will allow the Phoenix campus to become a powerhouse, with an estimated total of 26 megawatts of critical IT power capacity.

The Strategic Importance

RadiusDC CEO Mike Krza emphasized the strategic nature of this acquisition, stating that it not only strengthens the company's national infrastructure but also enhances its ability to serve customers effectively in a critical market. The existing interconnection ecosystem at PhoenixNAP is robust, with a diverse customer base. Thus, by integrating this facility into its portfolio, RadiusDC positions itself favorably within a booming data center ecosystem.

The acquisition allows RadiusDC to leverage existing facilities while simultaneously expanding its operational capabilities to meet increasing demand from network operators, content providers, and other tech-related services. With heightened capacity and advanced connectivity options, the Phoenix I campus is set to provide users with flexible, scalable infrastructure vital for modern business operations.

Operational Continuity and Future Vision

A crucial aspect of the deal is the assurance that approximately 80% of PhoenixNAP's global business operations, including its Bare Metal Cloud services and network platforms, will continue independently under the current management team. This arrangement allows PhoenixNAP to focus on its core offerings while RadiusDC oversees the transition and operational management of the facility.

President of PhoenixNAP, Ian McClarty, expressed satisfaction with the partnership, citing the potential for both entities to thrive from this collaboration. The existing customer relationships and operational processes will remain intact during the transition, ensuring that service delivery remains uninterrupted.

Expanding Presence

With this acquisition, RadiusDC also expands its geographical footprint in the United States, linking its services more closely with key market regions including Miami, Atlanta, Denver, Nashville, and Indianapolis. This strategic expansion is essential to support the growing demand for enhanced data center services across various metropolitan areas.

Additionally, major advisory firms played a vital role in facilitating this acquisition. J.P. Morgan acted as the financial advisor for RadiusDC, while BofA Securities served in the same capacity for PhoenixNAP, ensuring both companies received the necessary guidance throughout the process.

Conclusion

As the demand for data-centered services accelerates, RadiusDC's acquisition of PhoenixNAP's facility is a clear signal of its commitment to optimize infrastructure and service delivery in critical markets. With an evolved operational capacity, an ambitious development plan, and a focus on customer satisfaction, RadiusDC is poised to meet the future challenges of a continually changing tech landscape. For more details, visit RadiusDC's official website.