Private equity real estate firm highlights opportunities in the growing data center sector
(Dec. 13, 2024)—Cottonwood Group (Cottonwood), a private equity real estate investment firm, has closed $56 million in financing for three data center land developments in Arizona, Ohio, and Virginia. This strategic investment underscores Cottonwood’s bullish outlook on the data center sector, which continues to present opportunities for growth and innovation in digital infrastructure.
“With the ever-increasing demand for digital connectivity, data centers are the backbone of the technological ecosystem,” said Mark Green, Chief Investment Officer at Cottonwood. “The opportunities in this sector are immense, and Cottonwood is committed to deploying innovative financing strategies that drive value for our clients and investors while supporting critical digital infrastructure.”
Financing key projects across three dynamic markets showcases Cottonwood’s strategic focus on high-growth markets with strong fundamentals. In Virginia, the region’s connectivity advantages, particularly in Northern Virginia, a global hub for hyperscale data centers, make it a key area for technology and data-driven industries. Ohio is emerging as a competitive alternative for major digital infrastructure projects, driven by its strategic location, low energy costs, and business-friendly environment. Arizona, with its solid industrial base and thriving technology sector, adds further geographic diversification to Cottonwood’s portfolio, highlighting its ability to capitalize on opportunities across dynamic markets.
Cottonwood’s investments reflect its belief in the data center sector as a critical driver of the digital economy. “Data centers are at the forefront of the digital transformation,” said Green. “We believe Cottonwood’s ability to deliver creative financing solutions positions us as leaders in this high-growth sector. As demand for digital infrastructure accelerates, we remain committed to expanding our geographic footprint and strategically deploying capital across a range of opportunities, including debt, equity and platform investments.”
Cottonwood considers its investment pipeline robust, resulting from a strategic focus on expanding into high-growth markets. The firm is optimistic about the data center sector’s potential through 2025 and beyond as technological advancements continue to fuel demand for modern digital infrastructure.