A newly formed entity tied to Miami-based I Squared Capital has acquired 10 data centers throughout the United States in a $225 million deal that will form the initial assets in what is expected to be a $1 billion investment.

I Squared purchased the 10 facilities spanning about 259,000 square feet of colocation space in nine U.S. markets from a subsidiary of Washington, D.C.-based Cogent Communications Holdings. The portfolio includes 53 megawatts of installed power.

I Squared has committed up to $1 billion to launch an artificial intelligence data center platform.

“Location, power and connectivity are the three variables that determine a data center’s long-term value, and these facilities have all three in markets where new supply is severely constrained,” said Gautam Bhandari, I Squared Capital co-founder, managing partner and global chief investment officer, in a statement.

“As AI moves from the training phase — where models are built — to the inference phase, where they are used by people and businesses every day, demand for high-density, low-latency facilities like these will only grow,” Bhandari added.

The acquisition by I Squared comes as tech firms spend a record amount on their AI networks, including real estate.

The 10 data centers Cogent sold to I Squared, according to Cogent, are the following:

• Chicago: 4200 W. 40th St.
• Atlanta: 1190 SW Allene Ave.
• Phoenix: 1530 E. Roeser Road
• Los Angeles: 1750 W. Penhall Way in Anaheim; 100 S. Flower St. in Burbank.
• Kansas City, Missouri: 101 Holmes St.
• Baltimore: 6050 Race Road in Elkridge
• Houston: 8902 Point Six Circle
• Nashville, Tennessee: 338 Woodycrest Ave.
• Stockton, California: 3807 Coronado Ave.

Cogent declined further comment. The buyer also declined further comment beyond the firm’s press release. The 10 purpose-built data centers have room for expansion for higher-density data center deployments, I Squared officials said. The portfolio deal is scheduled to close in the third quarter, subject to closing conditions.
The new entity by I Squared is expected to be established upon the closing of the portfolio, officials said. Bhandari said in the statement the deal is consistent with the firm’s approach of acquiring “strategically located assets and investing the capital and operational expertise needed to unlock their full potential.”