H5 Data Centers, a prominent owner and operator of mission-critical data center infrastructure and interconnection ecosystems, has strengthened its presence across the United States by acquiring three highly interconnected data centers from 365 Data Centers. The newly acquired facilities are located in Buffalo, New York; Nashville, Tennessee; and Tampa, Florida three markets that play a vital role in regional and national digital infrastructure networks.
With this move, H5 Data Centers immediately establishes a stronger footprint in multiple high-value markets. More importantly, the acquisition significantly advances the company’s long-term strategy to build and scale interconnected data center ecosystems across North America. Each facility is carrier-dense and deeply embedded within its local digital economy, supporting network providers, cloud platforms, and enterprise customers.
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Moreover, this transaction marks the second portfolio acquisition completed in partnership with Novacap. Previously, in January of last year, H5 Data Centers and Novacap jointly acquired a U.S.-based wholesale data center portfolio, reinforcing a shared vision focused on long-term value creation in digital infrastructure.
“These facilities are important digital infrastructure assets with deeply interconnected ecosystems and long-standing customer relationships,” said Josh Simms, CEO of H5 Data Centers. “They fit within our focus of owning and operating data centers that support carrier networks, digital content distribution, and the next generation of cloud, AI, and enterprise workloads.”
As demand continues to surge for low-latency connectivity, cloud scalability, and AI-driven workloads, H5 Data Centers is positioning itself to support evolving customer needs. By integrating these assets into its platform, the company enhances its ability to deliver resilient, scalable, and interconnected environments that underpin modern digital services.
“H5 Data Centers brings deep operating expertise and a clear vision for building highly interconnected data centers,” added Ted Mocarski, Senior Partner and Head of Digital Infrastructure at Novacap. “This transaction fits squarely within our strategy of building a diversified portfolio of high-quality digital infrastructure assets.”
Meanwhile, for 365 Data Centers, the transaction represents a strategic realignment that enables future growth. The company plans to reinvest the proceeds into expanding higher-density megawatt services across several larger facilities, aligning with increasing market demand.
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“365 is proud to have developed each of these data centers into the leading regional network hub and pleased that HyscaleIX, under the stewardship of H5 Data Centers, is a customer focused, best-in-class operator,” said Derek Gillespie, CEO of 365 Data Centers. “The sales proceeds will further enable 365 to expand and deliver higher-density MW services at a number of our larger facilities.”
In addition, company leadership emphasized the financial and strategic flexibility gained through the deal.
Bob DeSantis, Co-Founder and Board Member of 365, added, “This successful transaction for 365 aligns perfectly with the company’s and its investors’ strategic objectives and provides management with the financial flexibility to achieve them.”
Overall, the acquisition underscores a broader industry trend toward consolidation and ecosystem-driven growth, as data center operators respond to rising connectivity, cloud, and AI infrastructure demands across North America.
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