Stonepeak has announced an agreement on behalf of certain affiliated investment vehicles to acquire an approximately 29% stake in American Tower’s US data center business as part of a new long-term strategic partnership.

The partnership will be realized through investment in common equity and mandatorily convertible preferred equity, in a transaction valued at US$2.5 billion. American Tower Corporations' data center portfolio consists of 27 data centers in 10 U.S. markets, more than 450 networks, 23 native cloud on-ramps, and over 35,000 interconnections.

J.P. Morgan and CDX Advisors are serving as financial advisors to American Tower. Cleary Gottlieb Steen & Hamilton LLP, Sullivan & Worcester LLP are serving as legal advisors to American Tower. MUFG Bank, Ltd. is serving as a financial advisor and Sidley Austin LLP is serving as legal advisor to Stonepeak. The transaction is expected to close in the third quarter of 2022, subject to customary closing conditions.