GI Partners Closes $1B Continuation Vehicle for Flexential Amidst Data Center Market Challenges

GI Partners has facilitated a $1 billion investment in Flexential, a data center company, through a single-asset continuation vehicle backed by Hamilton Lane and GI Data Infrastructure. The investment aims to address record-low vacancy rates and power constraints in the data center market, enabling Flexential to accelerate the development of next-generation data centers and expand its high-density colocation services. The move reflects GI Partners' confidence in Flexential's market leadership and its potential to scale effectively within the current market dynamics.

SAN FRANCISCO, July 2, 2025 - GI Partners, a leading private investment firm, has facilitated a $1 billion investment in Flexential, a leading provider of secure and flexible data center solutions. The investment was made through a single-asset continuation vehicle anchored by funds managed by Hamilton Lane (Nasdaq: HLNE) and GI Data Infrastructure. This significant funding aims to address the challenges posed by record-low vacancy rates and power constraints in the data center market, enabling Flexential to accelerate the development of next-generation data centers and expand its high-density colocation services [1].

The investment reflects GI Partners' confidence in Flexential's leadership position in the data center market. "We are excited to continue our partnership with the Flexential team and look forward to supporting the company's next phase of growth," said Travis Pearson, Managing Director and Co-Head of Private Equity at GI Partners [1].

Flexential's CEO, Chris Downie, noted that the funding will help the company meet the surging demand from enterprise and AI customers. "This transaction strengthens our ability to deliver long-term infrastructure projects and secures the capital needed to keep pace with surging demand for AI and enterprise computing," he said [1].

The new capital will enable Flexential to expand in capacity-constrained markets, pursue new opportunities, and continue delivering the scale, reliability, and interconnection capabilities that its customers depend on. "We'll be able to expand in capacity-constrained markets and pursue new opportunities while we continue to deliver the scale, reliability, and interconnection capabilities our customers depend on," said Ryan Mallory, President and COO of Flexential [1].

The funding comes at a time when vacancy rates in primary markets have dropped to record lows, data center pricing has approached historic highs, and power constraints are lengthening lead times for new deployments. Flexential's 2025 State of AI Infrastructure Report found that 44% of organizations believe infrastructure is the biggest barrier to AI adoption [1].

Flexential is tackling these issues through targeted expansion and sustained investment in its facilities and capabilities, including its FlexAnywhere® platform, which unites colocation, cloud, connectivity, and data protection services across 40+ data centers in 18 markets [1].

References:
[1] https://www.nasdaq.com/press-release/gi-partners-closes-continuation-vehicle-and-strategic-investment-gi-data
[2] https://seekingalpha.com/article/4814737-hamilton-lane-stock-unique-play-on-rise-private-equity