US data center firm fifteenfortyseven Critical Systems Realty (1547) and investment firm Harrison Street have acquired a data center in Hawaii.
The companies this week announced the acquisition of DRFortress, Hawaii’s largest carrier-neutral data center, from GI Partners.
Terms were not shared. The existing DRFortress leadership team will remain in place following the acquisition.
"Hawaii serves as a strategic gateway for connectivity in the Pacific, and DRFortress has established itself as a vital interconnection hub for businesses and global networks alike," said J. Todd Raymond, CEO & managing director of 1547. "By bringing DRFortress into our connectivity-focused platform, we’re expanding customer access to cloud providers, submarine cable systems, and international markets—while maintaining its carrier-neutral foundation and continuing to scale to meet growing demand."
The facility totals 65,000 sq ft (6,039 sqm) with a capacity for 800 racks.
“Investing in essential digital infrastructure that meets the growing demand for secure, high-capacity interconnection is core to our strategy,” added Michael Borchetta, managing director at Harrison Street. “DRFortress plays a significant role in supporting businesses across Hawaii and the broader APAC region, and we look forward to working alongside 1547 to expand its services.”
The company was founded in 2006 by four ex-Equinix employees: Jeff Brown, Fred Rodi, Rosa White, and Vinh Do. With the backing of several investors, DRFortress gathered around $11 million to invest in buying its current data center at 3375 Koapaka Street from Equinix, along with tenants and the Hawaiian Internet exchange.
“This next chapter with 1547 and Harrison Street represents a great opportunity for DRFortress and our customers,” said Rosa White, co-president, CFO, and co-founder of DRFortress. “With added scale, investment, and expertise, we’ll be able to expand our services and reach while staying true to our mission of delivering world-class infrastructure solutions to businesses throughout Hawaii.”
GI Partners initially acquired a majority interest in DRFortress in January 2020 in partnership with co-founders Fred Rodi and Rosa White.
“Over the past five years, we’ve been proud to support DRFortress’ growth as Hawaii’s leading interconnection hub,” said Mark Prybutok, managing director and head of data infrastructure at GI Partners. “Fred, Rosa, and the entire DRFortress team have built an exceptional platform, and we are confident that 1547 and Harrison Street are the right development partners to lead its continued success.”
Bank Street Group LLC served as the exclusive financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to GI Partners and DRFortress. DLA Piper served as legal advisor to 1547 Critical Systems and Harrison Street.
Founded in 2005, Harrison Street is an investment management firm exclusively focused on alternative real assets. The firm has approximately $56 billion under management.
Since 2018, Harrison Street said it has committed more than $5.6bn to powered shells, carrier hotels, colocation sites, and dark fiber assets. The firm has invested in over two dozen digital assets, including more than 6.5 million sq ft (603,870 sqm) of data centers with more than 2.1GW of capacity.
1547 has data centers in New York, Oregon, Indiana, Wyoming, Wisconsin, Texas, Hawaii, and Illinois.
Harrison Street has previously partnered with 1547 to acquire the Pittock Block carrier hotel in Portland, Oregon; the Chase Tower carrier hotel in McAllen, Texas; and the Wells Building carrier hotel in Milwaukee, Wisconsin. Harrison Street also acquired CIM Group’s stake in four US data centers co-owned with 1547. Last year, the two companies acquired a carrier hotel data center in South Bend, Indiana, and acquired AlohaNAP, a carrier hotel data center located on the island of O‘ahu in Hawaii.
