Canadian data center operator Carrier has acquired a facility in Perth, Australia.
TMX-listed Carrier Connect Data Solutions Inc. this week announced that it has signed a non-binding letter of intent (LOI) with Nexion Group to buy its Tier II/III data center in the Belmont area of Perth.
Nexion operates a 2MW, 8,000 sq ft (743 sqm) data center at 37-39 Robinson Avenue. The site has capacity for 220 racks and currently houses three diesel backup generators.
Carrier will pay Nexion AU$2.5 million (US$1.57m), including AU$200,000 upfront, AU$100,000 in six months, and AU$2.2M amortized into monthly payments for a 25-year term at nine percent interest, as a vendor take-back note.
“We are excited to announce the LOI with Nexion, as we predict that it will show that our thesis of accumulating non-core assets from third party technology companies for mutual benefit has significant merit in the market,” said Carrier CEO Mark Binns.
“Nexion’s parent company has an alternative focus to data center ownership and operation now, whereas the data center is a perfect complement to our Canadian operations. With an Australian footprint, we can offer customers on both continents primary connectivity, disaster recovery, and traditional data center services.”
Carrier said the as-built replacement value of the racks, generators, cooling systems, and equipment is estimated to be worth “well over CAD$6 million (US$4.1m).”
The facility is operating at 25 percent of total capacity, leaving “substantial room to grow revenue, according to Carrier.
Binns, who took over the role of CEO in February, added: “By acquiring Nexion’s data center, we have a built, tested, and operating facility with a long-standing customer base that is already profitable on a standalone basis.”
Carrier currently operates a data center at 200 Burrard Street in Vancouver, British Columbia, Canada. Launched in 2022, the facility offers capacity for 50 racks. The 21-story office building totals more than 365,000 sq ft.
The company joined Canada’s TSXV exchange last month after Carrier Connect Systems Ltd. merged with Hopefield Ventures Two Inc.
Launched in 2019, Carrier initially operated a seven-rack presence for a handful of clients in the Spencer Building carrier hotel at Harbour Centre in Vancouver, before moving to a larger space at 200 Burrard in 2022 and closing the Spencer Building operation. According to a company presentation, the company aims to acquire more data centers this year and build its own by 2027.
Established in 2017, Nexion is an Australian technology services firm offering cloud, compute, storage, network, connectivity, and cyber services. The company took over the Belmont data center in 2018, renaming it Nexion W1. The facility was built in 2008 as the Metro IX Data Centre and previously operated by Datacom.
