Silver Lake Partners, the private equity firm that has backed Vantage Data Centers, one of Silicon Valley’s biggest data center providers, since its founding in 2010, is considering selling the company, Reuters reported, citing anonymous sources.
The news comes amid a boom in all top US data center markets, Silicon Valley included. As cloud and internet services giants beef up infrastructure capacity, data center providers like Vantage are racing to build new capacity to satisfy their hunger for server space.
Vantage has data center campuses in Santa Clara, California, and Quincy, Washington, but most of its recent expansion efforts have been focused on Santa Clara. So far this year, the company raised $300 million to fund construction and announced plans to add 21MW of capacity at its original Santa Clara location (home to a former Intel data center campus) and build a whole new 51MW campus on a nine-acre site about two miles away.
Read more: How Vantage Data Centers ‘Created Land’ For a 51 MW Santa Clara Expansion Campus
Silver Lake has retained Royal Bank of Canada and DH Capital to run an auction for Vantage, but the private equity firm may still decide against selling the data center company, sources told Reuters.