I Squared Capital is stepping deeper into the AI infrastructure boom with a $225 million cash purchase of 10 U.S. data center facilities from Cogent Fiber, a deal that gives the investment firm a larger foothold in one of the fastest-growing corners of digital infrastructure.

The acquisition is not just a property deal. I Squared plans to use the facilities as the starting point for a new U.S. data center operating platform, backed by an additional $1 billion commitment for upgrades, expansions and future acquisitions.

The portfolio covers nine U.S. markets, including Chicago, Atlanta and Houston. Together, the assets include around 53 megawatts of power capacity and nearly 259,000 square feet of colocation space, giving I Squared a ready-made base in locations where power access and connectivity have become increasingly difficult to secure.

The deal comes as artificial intelligence demand reshapes the data center industry. Much of the early AI buildout focused on large centralized facilities used to train powerful models. Now, investors are paying closer attention to infrastructure that can support AI inference, where trained models respond to real-time user requests.

That shift matters because inference workloads often need to run closer to businesses and consumers to reduce latency and improve speed. As AI tools move from testing phases into daily use across companies, cloud platforms and consumer products, regional data centers with strong network links are becoming more valuable. According to McKinsey research on AI data center demand, global investment in AI compute infrastructure is expected to rise sharply over the coming years.

Gautam Bhandari, co-founder and managing partner at I Squared Capital, said the long-term value of a data center depends on location, power and connectivity. He added that the newly acquired facilities have all three in markets where fresh supply is heavily constrained.

Cogent Fiber, the seller, is an indirect wholly owned subsidiary of Cogent Communications Holdings. Cogent shares have fallen nearly 16% in 2026, even as investor interest in AI-related infrastructure continues to build.

For I Squared, the transaction adds to a wider digital infrastructure expansion strategy. The firm already invests in data centers and related assets, and last month agreed to acquire a majority stake in Elea, one of Brazil’s largest carrier-neutral data center platforms.

The latest purchase shows how infrastructure investors are moving beyond the first wave of AI hype and focusing on the physical systems needed to support everyday AI usage. Power-rich, well-connected data centers in major markets are becoming increasingly important as companies prepare for heavier AI workloads and faster response-time demands.

With the Cogent Fiber assets, I Squared is positioning itself for the next stage of artificial intelligence growth — one driven less by model training alone and more by the constant, real-time processing required to make AI products work at scale.

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