I Squared Capital Acquires Cogent Fiber Data Centers for $225M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
I Squared Capital entered into a definitive Purchase and Sale Agreement to acquire a portfolio of ten data center facilities from Cogent Fiber for $225M in cash. The acquisition will seed a new U.S. data center operating platform focused on colocation, high-density deployments, and AI inference infrastructure. I Squared has committed up to $1B to build the platform through targeted capital investment, customer-led expansion, and additional acquisitions. The seed portfolio comprises approximately 53 megawatts of installed power capacity and approximately 259,000 square feet of available colocation space across nine U.S. markets: Chicago, Atlanta, Phoenix, Los Angeles, Kansas City, Baltimore, Houston, Nashville and Stockton. Together, these nine markets serve a combined population of over 63 million people. All ten facilities are purpose-built data centers owned fee simple and have room for expansion. In addition, these facilities are capable of supporting higher-density deployments, including liquid-cooling-enabled configurations. Upon closing, I Squared will establish a new, standalone operating platform to own, operate, and grow the business with a seasoned management team in place from day one. The data center facilities offer a compelling combination of owned real estate, existing high density-enabled power infrastructure, multi-carrier interconnection, and attractive geographic footprint, providing the foundation for a scaled platform. The facilities have diverse and dense fiber connectivity, with close proximity to the local internet exchanges, positioning them well for a broad range of workloads including retail colocation, wholesale colocation, content, and latency sensitive AI inference workloads. The transaction is expected to close in the third quarter of 2026, subject to customary regulatory approvals including the expiration of the applicable Hart-Scott-Rodino waiting period.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CCOI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CCOI
Wall Street analysts forecast CCOI stock price to rise
4 Analyst Rating
1 Buy
2 Hold
1 Sell
Hold
Current: 21.620
Low
21.00
Averages
22.33
High
23.00
Current: 21.620
Low
21.00
Averages
22.33
High
23.00
About CCOI
Cogent Communications Holdings, Inc. is a facilities-based provider of Internet access, private network services, optical wavelength and optical transport services and data center colocation space and power. The Company operates two networks: an Internet protocol (IP) Network designed and optimized to transmit packet routed data and an Optical Wave Network designed to provide optical wave and transport services. It delivers its services primarily to businesses, large and small, communications service providers and other bandwidth-intensive organizations in approximately 57 countries across North America, Europe, Asia, South America, Oceania and Africa. It offers on-net Internet access services through its own facilities, which run from its IP Network to its customers’ premises. The Company provides its on-net Internet access and private network services to its corporate, net-centric and enterprise customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
I Squared Capital Acquires Data Centers for AI Infrastructure
- Acquisition Overview: Investment manager I Squared Capital announced on Tuesday the acquisition of 10 data center facilities from Cogent Fiber for $225 million in cash, marking its latest investment in AI infrastructure.
- Platform Development Plans: I Squared intends to use these assets as a 'seed' for a new U.S. data center operating platform, committing an additional $1 billion for upgrades, expansions, and acquisitions to enhance its market competitiveness.
- Market Trend Shift: The deal spans nine locations and underscores the shift from large centralized data centers to those closer to end-users for AI inference, reflecting the distinction between 'learning' and 'doing.'
- Facility Value Assessment: Gautam Bhandari, co-founder of I Squared Capital, emphasized that location, power, and connectivity are the three variables determining a data center's long-term value, and the acquired facilities possess all three in markets where new supply is severely constrained.
See More
Cogent Communications Sells 10 Data Centers for $225M
- Significant Transaction Value: Cogent Fiber is selling 10 data center facilities for $225 million in cash, which not only provides substantial cash flow but also enhances the company's financial flexibility to support future investments.
- Diverse Facility Locations: The facilities are located in major U.S. cities, including Phoenix, AZ, Anaheim, CA, and Burbank, CA, which will aid the new entity in rapid expansion across different markets due to geographical diversity.
- Transaction Timeline: The deal is expected to close on or after June 12, 2026, providing ample preparation time for both parties to ensure a smooth transaction and mitigate potential risks.
- Positive Stock Reaction: Cogent Communications' stock rose by 9.03% to $19.80, reflecting the market's positive sentiment towards the transaction and indicating investor confidence in the company's future growth potential.
See More
Cogent Sells 10 Data Centers for $225 Million
- Transaction Overview: Cogent Communications Holdings, Inc. announced that its subsidiary, Cogent Fiber, LLC, has agreed to sell 10 data centers in the U.S. for $225 million in cash, covering facilities in Phoenix, AZ; Anaheim, CA; Burbank, CA; Stockton, CA; Atlanta, GA; Chicago, IL; Elkridge, MD; Kansas City, MO; Nashville, TN; and Houston, TX, indicating a strategic intent for asset optimization.
- Timeline for Closure: The transaction is expected to close on June 12 or upon the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, demonstrating the company's proactive approach to asset disposal while adhering to regulatory requirements.
- Market Reaction: In pre-market trading on the NYSE, Cogent's shares rose by 7.98% to $19.61, reflecting a positive market response to the transaction, despite a 1.14% decline in the regular session on Monday.
- Undisclosed Use of Proceeds: Although the company did not disclose how it would utilize the proceeds from the sale, this transaction could potentially provide funding for future investments and expansions, indicating Cogent's flexible response strategy in a competitive market.
See More
Cogent Sells 10 Data Centers for $225 Million
- Transaction Overview: Cogent Communications Holdings, Inc. announced that its wholly owned subsidiary, Cogent Fiber, LLC, has signed an agreement to sell 10 data centers for an aggregate cash price of $225 million to a newly formed entity sponsored by I Squared Capital, with locations including Phoenix, AZ, and several cities in California, expected to close after June 12, 2026.
- Market Impact: This transaction allows Cogent to focus resources on its core business of providing low-cost, high-speed internet access and private network services, thereby enhancing its competitiveness in bandwidth-intensive markets.
- Strategic Significance: By divesting these data centers, Cogent aims to optimize its asset portfolio, improve financial flexibility, and provide funding for future investments and expansions, particularly across its operations in 306 global markets.
- Regulatory Compliance: The transaction must comply with the Hart-Scott-Rodino Antitrust Improvements Act, ensuring that all regulatory requirements are met before closing, thereby mitigating potential legal risks.
See More
Cogent Sells 10 Data Centers for $225 Million
- Transaction Overview: Cogent Communications Holdings, Inc. announced that its wholly-owned subsidiary, Cogent Fiber, LLC, has signed an agreement to sell 10 data centers for an aggregate cash price of $225 million to a newly formed entity sponsored by I Squared Capital, reflecting the company's strategic decision to optimize its asset portfolio.
- Facility Locations: The 10 data centers are located in key U.S. cities including Phoenix, AZ; Anaheim, Burbank, and Stockton, CA; Atlanta, GA; Chicago, IL; Elkridge, MD; Kansas City, MO; Nashville, TN; and Houston, TX, enhancing the buyer's market presence across multiple important regions.
- Transaction Timeline: The deal is expected to close on June 12, 2026, or upon the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, indicating the company's proactive approach to asset disposal while adhering to regulatory requirements.
- Company Background: Cogent is a facilities-based provider of low-cost, high-speed internet access and private network services, operating an all-optical IP network across 306 markets, and this transaction is poised to further enhance its competitive position and operational flexibility in the market.
See More
Pomerantz LLP Investigates Cogent for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating Cogent Communications Holdings, Inc. for potential securities fraud or unlawful business practices by its officers, which could lead to significant losses for investors.
- Declining Financial Performance: On May 4, 2026, Cogent reported a sequential decline in service revenue for Q1 2026, indicating potential challenges in maintaining market competitiveness and operational efficiency.
- Stock Price Plummet: Following the disappointing financial results, Cogent's stock price fell by $6.79, or 19.32%, closing at $16.37 per share on May 4, 2026, severely undermining investor confidence and market perception.
- Potential Legal Consequences: As a prominent securities litigation firm, Pomerantz LLP may offer legal support to affected investors, and if the investigation confirms wrongdoing, Cogent could face substantial liability for damages.
See More
I Squared Capital Acquires Data Centers for AI Infrastructure
- Acquisition Overview: Investment manager I Squared Capital announced on Tuesday the acquisition of 10 data center facilities from Cogent Fiber for $225 million in cash, marking its latest investment in AI infrastructure.
- Platform Development Plans: I Squared intends to use these assets as a 'seed' for a new U.S. data center operating platform, committing an additional $1 billion for upgrades, expansions, and acquisitions to enhance its market competitiveness.
- Market Trend Shift: The deal spans nine locations and underscores the shift from large centralized data centers to those closer to end-users for AI inference, reflecting the distinction between 'learning' and 'doing.'
- Facility Value Assessment: Gautam Bhandari, co-founder of I Squared Capital, emphasized that location, power, and connectivity are the three variables determining a data center's long-term value, and the acquired facilities possess all three in markets where new supply is severely constrained.
See More
Cogent Communications Sells 10 Data Centers for $225M
- Significant Transaction Value: Cogent Fiber is selling 10 data center facilities for $225 million in cash, which not only provides substantial cash flow but also enhances the company's financial flexibility to support future investments.
- Diverse Facility Locations: The facilities are located in major U.S. cities, including Phoenix, AZ, Anaheim, CA, and Burbank, CA, which will aid the new entity in rapid expansion across different markets due to geographical diversity.
- Transaction Timeline: The deal is expected to close on or after June 12, 2026, providing ample preparation time for both parties to ensure a smooth transaction and mitigate potential risks.
- Positive Stock Reaction: Cogent Communications' stock rose by 9.03% to $19.80, reflecting the market's positive sentiment towards the transaction and indicating investor confidence in the company's future growth potential.
See More
Cogent Sells 10 Data Centers for $225 Million
- Transaction Overview: Cogent Communications Holdings, Inc. announced that its subsidiary, Cogent Fiber, LLC, has agreed to sell 10 data centers in the U.S. for $225 million in cash, covering facilities in Phoenix, AZ; Anaheim, CA; Burbank, CA; Stockton, CA; Atlanta, GA; Chicago, IL; Elkridge, MD; Kansas City, MO; Nashville, TN; and Houston, TX, indicating a strategic intent for asset optimization.
- Timeline for Closure: The transaction is expected to close on June 12 or upon the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, demonstrating the company's proactive approach to asset disposal while adhering to regulatory requirements.
- Market Reaction: In pre-market trading on the NYSE, Cogent's shares rose by 7.98% to $19.61, reflecting a positive market response to the transaction, despite a 1.14% decline in the regular session on Monday.
- Undisclosed Use of Proceeds: Although the company did not disclose how it would utilize the proceeds from the sale, this transaction could potentially provide funding for future investments and expansions, indicating Cogent's flexible response strategy in a competitive market.
See More
Cogent Sells 10 Data Centers for $225 Million
- Transaction Overview: Cogent Communications Holdings, Inc. announced that its wholly owned subsidiary, Cogent Fiber, LLC, has signed an agreement to sell 10 data centers for an aggregate cash price of $225 million to a newly formed entity sponsored by I Squared Capital, with locations including Phoenix, AZ, and several cities in California, expected to close after June 12, 2026.
- Market Impact: This transaction allows Cogent to focus resources on its core business of providing low-cost, high-speed internet access and private network services, thereby enhancing its competitiveness in bandwidth-intensive markets.
- Strategic Significance: By divesting these data centers, Cogent aims to optimize its asset portfolio, improve financial flexibility, and provide funding for future investments and expansions, particularly across its operations in 306 global markets.
- Regulatory Compliance: The transaction must comply with the Hart-Scott-Rodino Antitrust Improvements Act, ensuring that all regulatory requirements are met before closing, thereby mitigating potential legal risks.
See More
Cogent Sells 10 Data Centers for $225 Million
- Transaction Overview: Cogent Communications Holdings, Inc. announced that its wholly-owned subsidiary, Cogent Fiber, LLC, has signed an agreement to sell 10 data centers for an aggregate cash price of $225 million to a newly formed entity sponsored by I Squared Capital, reflecting the company's strategic decision to optimize its asset portfolio.
- Facility Locations: The 10 data centers are located in key U.S. cities including Phoenix, AZ; Anaheim, Burbank, and Stockton, CA; Atlanta, GA; Chicago, IL; Elkridge, MD; Kansas City, MO; Nashville, TN; and Houston, TX, enhancing the buyer's market presence across multiple important regions.
- Transaction Timeline: The deal is expected to close on June 12, 2026, or upon the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, indicating the company's proactive approach to asset disposal while adhering to regulatory requirements.
- Company Background: Cogent is a facilities-based provider of low-cost, high-speed internet access and private network services, operating an all-optical IP network across 306 markets, and this transaction is poised to further enhance its competitive position and operational flexibility in the market.
See More
Pomerantz LLP Investigates Cogent for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating Cogent Communications Holdings, Inc. for potential securities fraud or unlawful business practices by its officers, which could lead to significant losses for investors.
- Declining Financial Performance: On May 4, 2026, Cogent reported a sequential decline in service revenue for Q1 2026, indicating potential challenges in maintaining market competitiveness and operational efficiency.
- Stock Price Plummet: Following the disappointing financial results, Cogent's stock price fell by $6.79, or 19.32%, closing at $16.37 per share on May 4, 2026, severely undermining investor confidence and market perception.
- Potential Legal Consequences: As a prominent securities litigation firm, Pomerantz LLP may offer legal support to affected investors, and if the investigation confirms wrongdoing, Cogent could face substantial liability for damages.
See More
