Charlotte’s Flexential Lands Significant Investment to Boost Growth
In a significant development for the tech landscape in Charlotte, Flexential—one of the largest colocation companies in the region—has successfully secured a major investment from a unit of Morgan Stanley. This partnership, which involves Morgan Stanley Infrastructure Partners, a private infrastructure investment platform, is set to enhance Flexential’s growth trajectory and expand its data center operations.
What Does This Investment Mean for Flexential?
According to Chris Downie, the CEO of Flexential, this collaboration will provide “substantial primary capital” which is essential for furthering the company’s mission. The investment allows Flexential to not only bolster its cutting-edge FlexAnywhere platform but also to address the growing demand for robust digital infrastructure. As technology continues to evolve, businesses are increasingly seeking reliable colocation services, and this investment aims to fulfill that need.
Understanding Colocation and FlexAnywhere
For those unfamiliar with the term, colocation refers to the practice where companies house their IT infrastructure in secure off-site facilities. Instead of managing their own servers, they utilize the services of providers like Flexential which operates more than 40 data centers across 19 markets in the United States. The FlexAnywhere platform is particularly appealing as it provides clients with both data center and cloud-based connectivity, enabling seamless integration with various cloud providers and internal data centers.
The planned investments will likely fuel Flexential’s services in areas such as enterprise digital transformation, cloud adoption, and managing artificial intelligence workloads, all of which are key areas of growth in today’s digital economy.
A Bright Future Ahead
Downie emphasized that this deal is not just about immediate gains; it’s about looking forward. He noted that the capital infusion will allow Flexential to “double down on active development to meet robust market demand.” While the company has not disclosed specific new markets it might be considering, Downie hinted at exciting possibilities for expanding their geographic footprint. “This strategic investment better positions us to expand our geographic presence,” he remarked.
Who’s Steering the Ship?
As part of this deal, both Morgan Stanley Infrastructure Partners and GI Partners will gain three seats on Flexential’s board. This means they’ll be actively involved in providing strategic guidance as Flexential navigates its growth. It’s a smart move that could enhance the company’s decision-making processes and help align its strategies with market demands.
A Quick History of Flexential
Interestingly, Flexential was born out of a significant merger back in 2018, when Charlotte-based Peak 10 and Denver-based ViaWest came together in a $1.68 billion deal. This merger has proven to be a game-changer, positioning Flexential as a leader in providing essential data services in the region. Their commitment to expanding operations has already been evident, as illustrated by a major expansion of their data center near UNC Charlotte that grew to a staggering 129,000 square feet in 2019.
Looking Ahead
With the backing of a powerful financial player like Morgan Stanley, the future looks bright for Flexential. This investment could be a game-changer in the digital infrastructure arena, as the company is well-positioned to meet the increasing market needs. As they head into an era of growth fueled by innovation, clients can look forward to enhanced services and capabilities that will undoubtedly come from this strategic partnership.
Keep an eye on Flexential; they’re certainly on a path to exciting times ahead in the ever-evolving tech landscape!