Canada Pension Plan Investment Board (CPP Investments) and Equinix have acquired Nordic data center operator atNorth for $4 billion, with CPP taking a 60% controlling stake. The deal, valued at an enterprise value of $4 billion, marks a significant expansion for both investors in the European data center market.

Strategic Expansion in the Nordic Data Center Sector

CPP Investments will invest approximately $1.6 billion to own a 60% controlling interest in atNorth, while Equinix will hold the remaining 40% stake. The acquisition is expected to bolster CPP Investments’ presence in Europe and further solidify its partnership with Equinix, a global digital infrastructure company.

According to the investors, the transaction is being funded by a $4.2 billion financing arrangement secured from a group of lenders across Europe and Canada. This funding will support the acquisition and future growth of the atNorth platform, which has been expanding its data center capacity across the Nordics.

Partners Group, which acquired atNorth in 2022, has transformed the company into a pan-Nordic data center platform with eight active facilities. The company currently operates in Denmark, Finland, Iceland, Norway, and Sweden. atNorth plans to expand its capacity using 1 gigawatt of secured power, reflecting the growing demand for data center infrastructure in the region.

Strengthening the Partnership with Equinix

Maximilian Biagosch, senior managing director and global head of real assets at CPP Investments, said the deal builds on the firm’s long-standing relationship with Equinix. He emphasized that the data center sector is experiencing accelerated demand driven by enterprise needs, cloud computing, and AI adoption.

“The Nordics are an attractive market for data center growth, and partnering with Equinix allows us to deploy capital at scale into a high-quality platform,” Biagosch said. “This transaction helps us deliver attractive risk-adjusted returns for CPP contributors and beneficiaries.”

Equinix has also highlighted the strategic value of the acquisition. Bruce Owen, president of Equinix’s EMEA region, said atNorth’s scalable sites are complementary to Equinix’s connectivity services and global footprint. He added that the acquisition will enhance the company’s ability to help customers use the expanding digital landscape in the Nordics.

“Combined with our joint focus on sustainability, this acquisition is expected to enhance our ability to help customers unlock the full potential of the Nordics’ expanding digital landscape,” Owen said.

Partners Group’s Strategic Exit and Continued Focus on Data Centers

Partners Group, which previously acquired atNorth in 2022, has now sold the company as part of its broader strategy to focus on value creation through platform-building. Ismail Afara, a member of the management team for infrastructure Europe at Partners Group, said the company implemented an entrepreneurial value creation plan with atNorth during a period of unprecedented growth in the European data center industry.

“We thank atNorth’s management team for their remarkable partnership on this journey. The Company’s vision is more critical than ever: to offer more compute for a better world,” Afara said.

Esther Peiner, partner and head of infrastructure at Partners Group, emphasized that data centers are businesses driven by scale. She explained that the firm’s strategy involves starting with a smaller base and using an expansion toolkit to grow its portfolio.

“Whilst the sale of atNorth marks a successful control exit from our data center portfolio, we remain thematically focused on data center assets across the globe,” Peiner said.

atNorth, which will continue to operate independently under its own brand, has also emphasized its commitment to the Nordics. Eyjólfur Magnús Kristinsson, CEO of atNorth, said the company’s strategy remains rooted in the region.

“We will continue to operate independently under the atNorth brand, preserving our dedication to the communities where we operate and the culture and values that have defined our success to date,” Kristinsson said.

With the acquisition, CPP Investments and Equinix are expected to further expand their data center footprint in Europe. The deal follows a 2024 joint venture involving Singapore’s GIC to grow the Equinix xScale data center program, indicating a broader strategy to invest in scalable digital infrastructure.