American Tower Corporation partners with Stonepeak to acquire a 29% stake in its U.S. data center business, valued at $2.5 billion, enhancing its capabilities amid increasing demand for hybrid IT solutions.

Target Information

American Tower Corporation is a leading global Real Estate Investment Trust (REIT), focusing on the ownership and operation of multi-tenant communications real estate. As one of the largest providers in the sector, the company boasts a substantial portfolio of approximately 221,000 communications sites, along with an extensive network of data center facilities across the U.S. This strategic acquisition represents Stonepeak's investment in approximately 29% of American Tower's U.S. data center business, reaffirming American Tower’s position in the infrastructure market.

The U.S. data center business, characterized by its portfolio of 27 data centers in key metropolitan areas, is expected to thrive under this partnership. American Tower will retain full managerial and operational control, ensuring its established strategies and operational efficiencies are continued, while providing Stonepeak with specific governance rights.

Industry Overview in the U.S.

The data center industry in the United States has experienced remarkable growth, driven by the increasing demand for low-latency and hybrid IT solutions. As companies pivot towards cloud services, the need for i