GI Partners Secures Major Funding for Flexential Data Center Expansion
On August 20, 2025, GI Partners, a prominent private investment firm, announced the successful closure of investments amounting to approximately $1 billion infused into Flexential, a leader in secure and flexible data center solutions. The deal involved both a single-asset continuation vehicle, which saw considerable oversubscription, and a strategic investment from GI Data Infrastructure. This funding aims to bolster Flexential's capacity to develop next-generation data centers and enhance its colocation services across the United States.
The significant capital influx is expected to enable Flexential to meet the increasing demands from enterprise and AI clients, which is critical given the growing reliance on data infrastructure in today’s digital economy. Existing limited partners of GI Partners were afforded an opportunity to receive liquidity while granting Flexential additional equity to scale its operations.
Travis Pearson, Managing Director at GI Partners, expressed strong support for Flexential, highlighting the firm's conviction in its leadership position within the data center market. 'We are excited to continue our partnership with the Flexential team and look forward to supporting the company's next phase of growth,' he stated.
Mark Prybutok, Managing Director and Head of GI Data Infrastructure, emphasized Flexential's pivotal role in the digital infrastructure sector. He noted, 'Flexential plays a critical role in the digital infrastructure ecosystem, supporting latency-sensitive enterprise, AI, and cloud workloads for a diverse base of blue-chip customers.'
In parallel with this recent investment, Flexential's CEO Chris Downie remarked on the transaction's significance. He stated, 'This transaction strengthens our ability to deliver long-term infrastructure projects and secures the capital needed to keep pace with surging demand for AI and enterprise computing.' This financial support comes at a time when data center vacancy rates are reaching record lows and pricing trends are nearing historic highs, presenting both challenges and opportunities for the industry.
Flexential aims to address these issues through targeted facility expansion and considered investments in its capabilities. The firm is also enhancing its FlexAnywhere® platform, which integrates colocation, cloud services, connectivity, and data protection functionalities across over 40 data centers in 18 markets. This platform is designed to speed up service delivery and cater to the demanding performance needs of AI and multi-cloud operations.
Ryan Mallory, President and COO of Flexential, highlighted the importance of this capital, stating, 'This capital enables us to accelerate site acquisition, guarantee power commitments, and bring projects online more quickly.' The firm intends to expand in capacity-constrained markets and explore new opportunities, ensuring that their customer needs for scale, reliability, and interconnection remain at the forefront of their operations.
The financial advisory roles for this substantial investment were handled by Baird and Goldman Sachs Co. LLC, while Ropes & Gray LLP and Simpson Thacher & Bartlett LLP provided legal counsel to GI Partners. Hamilton Lane offered legal advisory to its own interests in the continuation vehicle.
Established in 2001, GI Partners operates across various sectors, including data infrastructure, catering to entities focused on the modern digital economy. With its expansive portfolio and dedicated teams, GI Partners has raised over $47 billion to assist companies in their growth paths. For more information about GI Partners, please visit their official website.
Flexential's commitment to enhancing IT solutions for the most intricate business needs underscores their dedication to fostering digital transformation. Their services are strategically engineered to tackle the sophisticated challenges surrounding security and compliance while promoting resilience in today's fast-paced market. Individuals interested in learning more about Flexential's offerings are encouraged to visit their website as well.
As advancements in technology and increasing demand continue to shape the landscape, investments like these serve as a catalyst for innovation and operational resilience, offering promising prospects for the future of data centers.
The significant capital influx is expected to enable Flexential to meet the increasing demands from enterprise and AI clients, which is critical given the growing reliance on data infrastructure in today’s digital economy. Existing limited partners of GI Partners were afforded an opportunity to receive liquidity while granting Flexential additional equity to scale its operations.
Travis Pearson, Managing Director at GI Partners, expressed strong support for Flexential, highlighting the firm's conviction in its leadership position within the data center market. 'We are excited to continue our partnership with the Flexential team and look forward to supporting the company's next phase of growth,' he stated.
Mark Prybutok, Managing Director and Head of GI Data Infrastructure, emphasized Flexential's pivotal role in the digital infrastructure sector. He noted, 'Flexential plays a critical role in the digital infrastructure ecosystem, supporting latency-sensitive enterprise, AI, and cloud workloads for a diverse base of blue-chip customers.'
In parallel with this recent investment, Flexential's CEO Chris Downie remarked on the transaction's significance. He stated, 'This transaction strengthens our ability to deliver long-term infrastructure projects and secures the capital needed to keep pace with surging demand for AI and enterprise computing.' This financial support comes at a time when data center vacancy rates are reaching record lows and pricing trends are nearing historic highs, presenting both challenges and opportunities for the industry.
Flexential aims to address these issues through targeted facility expansion and considered investments in its capabilities. The firm is also enhancing its FlexAnywhere® platform, which integrates colocation, cloud services, connectivity, and data protection functionalities across over 40 data centers in 18 markets. This platform is designed to speed up service delivery and cater to the demanding performance needs of AI and multi-cloud operations.
Ryan Mallory, President and COO of Flexential, highlighted the importance of this capital, stating, 'This capital enables us to accelerate site acquisition, guarantee power commitments, and bring projects online more quickly.' The firm intends to expand in capacity-constrained markets and explore new opportunities, ensuring that their customer needs for scale, reliability, and interconnection remain at the forefront of their operations.
The financial advisory roles for this substantial investment were handled by Baird and Goldman Sachs Co. LLC, while Ropes & Gray LLP and Simpson Thacher & Bartlett LLP provided legal counsel to GI Partners. Hamilton Lane offered legal advisory to its own interests in the continuation vehicle.
Established in 2001, GI Partners operates across various sectors, including data infrastructure, catering to entities focused on the modern digital economy. With its expansive portfolio and dedicated teams, GI Partners has raised over $47 billion to assist companies in their growth paths. For more information about GI Partners, please visit their official website.
Flexential's commitment to enhancing IT solutions for the most intricate business needs underscores their dedication to fostering digital transformation. Their services are strategically engineered to tackle the sophisticated challenges surrounding security and compliance while promoting resilience in today's fast-paced market. Individuals interested in learning more about Flexential's offerings are encouraged to visit their website as well.
As advancements in technology and increasing demand continue to shape the landscape, investments like these serve as a catalyst for innovation and operational resilience, offering promising prospects for the future of data centers.
Topics Financial Services & Investing）
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