Involta, a data center provider based in Iowa, announced on Tuesday that it has raised $50 million in private equity. The round was led by M/C Partners, with participation from Morgan Stanley. The company’s president, Bruce Lehrman, said that the money will be used to support its growth throughout the USA, including the expansion of its $17 million colocation facility in Akron, Ohio.
“We envision Involta playing a leading role in the data center space in the coming years, particularly in tier II and tier III markets that are still very underdeveloped in terms of infrastructure,” said Gillis Cashman, managing partner, M/C Partners. “There is a tremendous need for infrastructure in those areas, and Involta is very well-positioned to address those needs with its superior platform and services.”
Involta currently operates 7 data centers in five states and plays a significant part in Iowa’s growing technology sector, which has attracted the likes of Google, Facebook and Microsoft, as well as host of local companies. However, since the company launched in 2007, its growth has been largely driven by the launch of its Involta CompliantCloudSM service platform, which includes a mix of infrastructure, storage, network and backup and recovery services that it offers out of its data center facilities.
As one article poignantly notes, the timing of the investment could not be better. “According to DCD Intelligence, the current amount invested in data center outsourcing and colocation rose 13 percent over the past 12 months and is now in the region of $8.8 billion. By the end of 2014, the research firm expects a further increase of 15 percent.”
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Although the Inolvta declined to comment on how much M/C Parners would own after the investment, it is believed that two members from the private equity firm will join Involta’s board of directors.
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(Image Credit: dvanzuijlekom)