Fengate joins CDPQ in backing Canadian data centre developer

The commitment to Montreal-based eStruxture boosts its funding to $145m as it pushes to expand across the country.

Fengate Real Asset Investments has joined two other investors in backing eStruxture Data Centers, a company expanding cloud-based data services across Canada.

Fengate’s commitment, along with a debt facility provided by a consortium of Canadian banks, raises eStruxture’s funding to C$180 million ($145 million; €118 million). The Montreal-based company was launched last June with the backing of Caisse de dépôt et placement du Québec and Canadian real estate developer Canderel to build and operate data centres across the country.

“With this additional financing, we can continue to execute our strategy of building Canada’s leading data centre company, both through organic and inorganic expansion opportunities,” said Todd Coleman, eStruxture president.

The company began business last year with C$80 million of funding from CDPQ and Canderel. Its mandate is to provide network and cloud-based data centre solutions for Canadian businesses.

In December, eStruxture began a C$150 million development to convert an old newspaper printing facility in Montreal into a 30MW data centre.

“We are impressed by the strength and speed of the management and operational teams at eStruxture, and the momentum of this company and this sector,” said Justin Catalano, a managing director at Fengate. “The data centre industry is experiencing tremendous growth, and the stability and long-term cash-flow profile aligns with our investment strategy.”

Fengate is a Toronto-based asset manager focused on infrastructure, real estate and private equity. It has raised over C$2.5 billion to date.