Cogent to Sell Phoenix Data Center as Part of $225 Million National Portfolio Deal

PHOENIX, AZ (May 27, 2026) — Cogent Communications Holdings, Inc. has entered into a definitive agreement to sell 10 data center facilities across the United States for $225 million in cash to a newly formed entity sponsored by I Squared Capital.

The transaction includes a Phoenix facility, but Cogent’s Tucson data center location does not appear to be part of the announced sale.

Cogent’s May 26 press release lists the 10 facilities included in the transaction as being in Phoenix, Anaheim, Burbank, Stockton, Atlanta, Chicago, Elkridge, Kansas City, Nashville, and Houston. Tucson was not listed among the markets included in the sale. The transaction is expected to close on the later of June 12, 2026, or the expiration or termination of the applicable Hart-Scott-Rodino waiting period.

I Squared Capital said the acquisition will seed a new U.S. data center operating platform focused on colocation, high-density deployments, and AI inference infrastructure. The portfolio includes approximately 53 megawatts of installed power capacity and approximately 259,000 square feet of colocation space across nine U.S. markets. I Squared has committed up to $1 billion to build the platform through capital investment, customer-led expansion, and additional acquisitions.

The sale comes as data center investment is drawing increased attention in Arizona and across the country, driven by demand for cloud services, artificial intelligence, high-density computing, and low-latency infrastructure. I Squared said the acquired facilities are positioned in markets where new data center supply is constrained and where power, connectivity, and location are increasingly valuable.

Cogent is a facilities-based provider of internet access and private network services. The company said proceeds from the data center sale are expected to support deleveraging following its 2023 acquisition of Sprint’s wireline business from T-Mobile. Cogent’s first-quarter 2026 earnings transcript referenced the planned sale of an initial 10 former Sprint data centers and said proceeds would be contributed to Cogent Communications Group, its borrowing entity.