IPI Partners, LLC, co-sponsored by ICONIQ Capital, LLC and an affiliate of Iron Point Partners, LLC, said one of its affiliates has acquired a data centre in the Western US region, in Denver, Colorado.

The 1500 Champa building was acquired from Morgan Reed Group, an independent real estate holding group that had owned the property since 2006.

1500 Champa is a three-story building with approximately 138,000 square feet of data centre and office space.

IPI said the facility has the potential to support approximately 10 total megawatts of power capacity.

The centre is one of two primary carrier-neutral telecommunications-focused data centres in downtown Denver and serves as a network hub for the Rocky Mountain region and broader United States.

The building’s “Meet-Me-Room” offers connectivity to 15 fibre optic and network service providers.

IPI plans to further invest in 1500 Champa to bolster the existing connectivity ecosystem, while developing “significant colocation capacity” for both existing and new customers.

The initial phase of construction is expected to be completed by Q4 2022.

Christopher Jensen, Managing Director of IPI, said: “We believe that 1500 Champa is an ideal asset to anchor IPI’s connectivity-focused platform given the strength of the existing network and immediately-available growth potential. We are excited to deliver new strategic data centre capacity in the Denver market over the next year.”

Elsewhere, IPI has partnered with its operating advisor, Mike Krza, to assist with operating the facility and expanding the data centre footprint.

Krza has decades of experience in digital infrastructure strategy and operations and will work with IPI in developing its connectivity-focused platform expansion into other markets throughout the United States.

Previously, Krza held COO and CFO roles at Flexential and its predecessor entity, ViaWest.

Krza said: “I am excited to work with the IPI team to solve customers’ network-centric facility needs throughout Denver and the broader United States. IPI is well-positioned to expand its data centre footprint closer to the ‘edge’ and highly-connected population centres with 1500 Champa and subsequent investments.”

Deutsche Bank Credit Solutions and Direct Lending provided the financing for the acquisition. Financial terms of the transaction were not disclosed.