King Street Capital Buys Colovore to Expand Liquid-Cool Data Centers

In a significant move that underscores the surging demand for high-density, efficient data center solutions, King Street Capital Management has acquired Colovore, a Santa Clara-based data center operator renowned for its liquid-cooled technology. The growth of high-performance computing (HPC) and next-generation chips has begun to stretch the capacities of traditional air-cooled data centers, creating an imperative for more advanced cooling solutions. Recognizing this, King Street’s strategic acquisition aims to leverage its deep real estate expertise, propelling the expansion of Colovore’s offerings and their market reach. Colovore, founded in 2012, has made impressive strides in data center innovation, initially offering liquid-cooled racks at a 35kW capacity and evolving to support a staggering 250kW per rack. Poised to meet the burgeoning demands of AI-driven and HPC applications, Colovore’s approach aligns seamlessly with the currents of technological progress.

Pioneering High-Density Solutions

Amidst a technological landscape where AI workloads and complex computational demands are radically transforming data center requirements, Colovore stands as a formidable entity. It has carved a niche in supporting high-density compute and optimizing customer deployments, a commitment set to deepen under the new ownership. King Street’s infusion will bolster Colovore’s plan to construct a second facility, known as SJC02, which will boast a 9MW capacity and reinforce its operational scaling across prime US markets. These efforts are not only indicative of Colovore’s ascendancy in the tech arena but also of a broader pattern, wherein innovative cooling technologies are increasingly viewed as the next frontier in data center development.

Digital Realty Trust and Pelio & Associates, the former investors in Colovore, pass the baton to King Street in a transaction that speaks volumes about the prevailing confidence in liquid cooling’s potential. As Colovore nurtures its trajectory under the new ownership, it retains its current management team to steer operations smoothly forward. This continuity ensures that renowned clients like Cerebras, Lambda Cloud, and Cirrascale can continue to depend on Colovore’s top-tier services without interruption, further cementing the company’s status as a critical pillar in the rapidly evolving tech ecosystem.

Betting on the Future of Data Centers

King Street’s investment in Colovore is a strategic move based on the belief that advanced infrastructure is essential to support emerging technologies. The shift towards liquid-cooled data centers represents a novel approach to the growing demand for higher power and cooling capabilities. The company is betting that such state-of-the-art facilities will soon be the norm, given the rapid pace of data growth. Colovore is poised to leverage King Street’s established real estate expertise to meet these challenges head-on, potentially redefining data center infrastructure.

The Colovore acquisition signals a market shift towards liquid cooling as the successor to traditional air cooling. With King Street’s leadership, Colovore is well-positioned to lead the charge in this pivotal transformation, ready to address the surge in tech progress. As companies face the need to handle more data-intensive tasks, the partnership between King Street and Colovore is expected to provide the high-efficiency solutions needed to fuel future innovation.

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