With $1B In Hand, Stack Infrastructure Data Center Expansion Continues

One of the fastest growing data center providers in the world, Stack Infrastructure unveils plans to build a massive 4 million square foot data center campus in Northern Virginia.

Fast-growing wholesale data center colocation provider Stack Infrastructure is building a massive 125-acre, 4 million square foot campus in the data center capital of the world, northern Virginia.

Stack Infrastructure, who has raised more than $1 billion since being formed in 2019, will develop a new data center campus in Manassas, Va., that will eventually offer more than 250 megawatts of critical capacity with flexible build-to-suit facilities to serve large data center users.

Stack is looking to catch the wave of hyperscale data center operators like Apple, Amazon, Facebook, Google and Microsoft who are investing billions each quarter in building, buying and equipping large facilities -- known as hyperscale data centers -- on a global basis. The Denver, Colo.-based data center provider generated over $1 billion last year from investors with plans to build more data centers focusing on hyperscale data center operators.

[Related: This Chinese Data Center Provider Expects U.S. IPO To Raise $500M]

By the end of this year, the plans to have 700,000 square feet up and running serving 72 megawatts of critical capacity in the new campus. Stack is building the data center campus in partnership with real estate development firm Peterson Companies who is based in the D.C. region.

“Northern Virginia continues to be the largest, most important data center market in the world, and we are excited to partner with Peterson on this opportunity,” said Stack CEO Brian Cox in a statement. “Prince William County offers robust power infrastructure and low latency connectivity within one of the densest concentrations of fiber networks in the world. This, in combination with the low total costs of ownership available in this market, enables us to offer an especially attractive value proposition to clients.”

Founded in 2019, Stack was formed by investor IPI Data Center Partners after it combined assets acquired from T5 Data Centers and Infomart Data Centers.

Traditional data center typically supports hundreds of physical servers and other IT hardware along with thousands of virtual machines. However, most of the new data centers being built over the past two years are hyperscale centers that house tens of thousands of servers and hardware alongside millions of virtual machines.

Hyperscale operators accounted for 33 percent of all spending on data center hardware and software in the first three quarters of 2019, up from 26 percent in 2017 and an increase from 15 percent in 2015. In the third quarter of 2019 alone, hyperscale capex data center spending exceeded $31 billion, up 8 percent year over year.