$15 Billion Infrastructure Play: KKR and GIP's Strategic Move into Data Center Dominance

The partnership between KKR and Global Infrastructure Partners has successfully closed its acquisition of CyrusOne in an all-cash transaction valued at approximately $15 billion, including debt assumption. This major deal signals a significant institutional pivot toward digital infrastructure, marking the completion of one of the infrastructure sector’s most notable transactions in recent years.

What CyrusOne Brings to the Table

CyrusOne operates as a premier global data center provider with over 50 high-performance facilities spanning worldwide locations. The company maintains a diverse customer base of approximately 1,000 organizations, with roughly 200 of those representing Fortune 1000 enterprises. Its service portfolio encompasses colocation, hyperscale solutions, and customized build-to-suit environments designed for hybrid-cloud and multi-cloud deployments.

The strategic importance of CyrusOne’s platform lies in its established global footprint and track record of delivering mission-critical infrastructure. As organizations accelerate their digital transformation initiatives, demand for reliable data center capacity continues to surge—positioning CyrusOne to capitalize on these secular growth trends.

Strategic Rationale: Why KKR and GIP Saw Opportunity

“We see significant opportunity ahead for CyrusOne to build on its market leading position at a time when the world is increasingly dependent on data centers at a rapid pace,” noted Waldemar Szlezak, a partner at KKR. The firm’s investment thesis centers on leveraging its extensive experience in digital infrastructure alongside GIP’s deep resources and operational expertise in the infrastructure space.

Global Infrastructure Partners, established in 2006 and headquartered in New York, manages over $81 billion in assets across 10 global offices. GIP’s portfolio comprises 48 companies generating combined annual revenues of approximately $40 billion and employing over 63,000 people. The firm’s infrastructure-focused mandate makes it a natural fit for CyrusOne’s long-term growth trajectory.

Will Brilliant, a partner at GIP, emphasized the secular opportunity: “Data consumption growth globally has created tremendous opportunity for skilled data center operators to provide critical infrastructure for their customers, including leading technology companies.” The partnership positions CyrusOne to unlock “significant additional potential under its new sponsorship.”

What Happens Next: Delisting and Transition

Effective upon deal completion, CyrusOne’s shares have been suspended from trading on the NASDAQ Global Select Market, and the company has requested full delisting. Additionally, CyrusOne notified Nasdaq of its intent to voluntarily delist its 1.450% Senior Notes due 2027 and deregister these notes from the Securities and Exchange Commission.

Dave Ferdman, Co-Founder and CEO of CyrusOne, characterized the transaction as beginning “an exciting new chapter” for the organization. With KKR and GIP’s backing, the company is positioned to accelerate its global expansion while leveraging the combined resources and expertise of two of the world’s most influential infrastructure investors.

The Financial Architecture Behind the Deal

The transaction was structured with support from Goldman Sachs & Co., Barclays, Wells Fargo Securities, Citigroup, and J.P. Morgan serving as financial advisors to the acquiring consortium. Morgan Stanley & Co. LLC and DH Capital, LLC advised CyrusOne on the transaction. Legal counsel included prominent global firms: Kirkland & Ellis LLP, Dentons (UK & Europe), Paul Weiss Rifkind Wharton & Garrison LLP, Cravath Swaine & Moore LLP, Venable LLP, and Eversheds Sutherland (International) LLP.

This comprehensive advisor network underscores the transaction’s complexity and the serious institutional commitment behind CyrusOne’s acquisition by KKR and GIP, signaling confidence in data center infrastructure as a foundational asset class for future growth.