i Squared to buy 10 data center facilities from Cogent Fiber

Cogent Communications has entered into an agreement to sell 10 data center facilities to i Squared, a private infrastructure investment firm, as part of its ongoing strategy to monetize assets acquired from Sprint. The transaction, which is expected to generate significant proceeds, aligns with Cogent’s broader initiative to streamline its portfolio and focus on high-growth segments such as wavelength services and edge data centers.

The 10 facilities being sold are part of the 24 wholesale data centers Cogent has identified for potential divestiture since the acquisition of Sprint’s wireline assets from T-Mobile in 2022. These sites were previously repurposed from Sprint’s legacy switch infrastructure and now serve as colocation facilities. Cogent CEO Dave Schaeffer has described the buyer as a “credible counterparty” and emphasized that pricing per megawatt is in line with the company’s expectations.

This deal follows a series of strategic moves by Cogent to optimize its infrastructure footprint. In Q2 2025, the company added seven more edge data centers to its portfolio, bringing the total to 86 edge facilities and 101 core data centers. The company continues to explore options for the remaining sites, including wholesale leases or further sales, while retaining a portion of the facilities for its own network needs.

Cogent’s financial performance in recent quarters has shown resilience despite the costs associated with integrating and repurposing the Sprint assets. For Q2 2025, the company reported revenue of $246.2 million and adjusted EBITDA of $73.5 million. The sale of these 10 data centers is expected to provide additional liquidity, supporting Cogent’s long-term goals of deleveraging and expanding high-margin wavelength services.