DataBank announces $185m equity investment from Colony Capital

Colony Capital has made a $185 million investment into DataBank, a provider of enterprise-class data centers, through the purchase of secondary equity interests from existing investors Edgewater Funds and Allstate.

Allstate will retain 50 percent of its interests and continue as a DataBank investor, while Edgewater will fully exit from its position. Nuveen will also continue as an important investor in DataBank, holding its original stake.

The transaction represents Colony Capital’s inaugural direct balance sheet investment in digital real estate and its first step in investing in the edge/colocation data center sector. Edgewater's board member will step down and be replaced by Justin Chang, Colony’s global head of private equity.

DataBank operates 20 data centers in nine U.S. markets, including Dallas, Minneapolis, Kansas City, Cleveland, Pittsburgh, Salt Lake City, Baltimore, Atlanta and Indianapolis.