CSquare files for IPO as Brookfield-backed data center operator targets NYSE debut

$1.35 billion is the amount CSquare is aiming to raise in an initial public offering that could value the data center company at as much as $4.18 billion. According to The Real Deal, the Dallas-based provider plans to sell 50 million shares at $23 to $27 apiece and list on the New York Stock Exchange under the ticker CSQR.

The offering would also help reshape the company’s balance sheet. CSquare said IPO proceeds are expected to go toward paying off $734 million outstanding on a revolving credit facility, a $75 million promissory note held by Brookfield and part of a broader $4.3 billion debt tied to asset-backed notes. Brookfield is expected to retain voting control after the offering.

CSquare has moved quickly from private-market consolidation to a public-market push. In April, the company disclosed that it had submitted a draft registration statement, a step that allowed it to move through part of the IPO process confidentially with regulators and the Securities and Exchange Commission. The company was formed last year after Brookfield Infrastructure Partners acquired Cyxtera Technologies for $775 million and combined it with Evoque Data Center Solutions.

Since launching in 2019, CSquare has assembled ownership or operating interests in more than 60 data centers across the United States, Canada and the United Kingdom. The company said much of its revenue comes from colocation and interconnection services. In the first quarter, CSquare reported $270.5 million in revenue and a net loss of $66 million, both up from the same period a year earlier.

The company has also been active on the acquisition front. In October, it was reported to be pursuing about $1 billion in purchases across the U.S. and Canada, including several colocation centers in Dallas, Nashville and Toronto, along with two properties in Boston and Minneapolis that it had previously operated under long-term leases. The buying push came as demand tied to artificial intelligence and cloud computing continued to lift interest in data center assets.

CSquare is not entering the public market alone. The Real Deal reported that Blackstone Digital Infrastructure Trust filed for its own IPO in May, seeking roughly $1.75 billion through the sale of more than 87 million shares priced at $20 each. That proposed offering was meant to fund acquisitions of newly built data centers used by hyperscalers, adding another large contender to an increasingly crowded IPO field tied to digital infrastructure.

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