King Street Takes Majority Stake in Data Center Operator Colovore

Global investment firm King Street Capital Management, L.P. acquired a majority ownership stake in Colovore, a Santa Clara-based data center operator specializing in liquid-cooled, high-density colocation for artificial intelligence and high-performance computing. Terms of the transaction weren’t disclosed.

The transaction will leverage King Street’sreal estate platform to support Colovore’s continued growth to meet increased demand for liquid-cooled data center solutions. The existing management team of Colovore will remain in place to rapidly expand the business.

“The next-generation chips and power-dense platforms that support AI and other high-performance computing applications are quickly overwhelming legacy, air-cooled data centers,” said Brian Higgins, co-founder and managing partner of King Street. “Colovore is uniquely positioned to meet the needs of these high-density customers, with a business focused exclusively on liquid-cooled data centers and over a decade of successful operating history supporting many of the leaders in the AI and HPC industries.”

With locations in Santa Clara and Nevada, Colovore plans to quickly scale into additional Tier 1 markets across the country under King Street’s sponsorship.