Are Fund-Back Colos Stable Enough for Your Long-Term Workloads?​

Are Fund-Back Colos Stable Enough for Your Long-Term Workloads?​

In Data Center Knowledge, analyst Alan Howard explores whether colocation providers backed by private equity or infrastructure funds offer sufficient stability for long-term customer workloads. The article features insights from DataBank CEO Raul Martynek, who distinguishes between short-term private equity investors and long-horizon infrastructure fund investors. Infrastructure funds, Martynek explains, typically plan investments over 15+ years with moderate returns, aligning well with the inherent durability and essential nature of digital infrastructure assets such as data centers, fiber, and cell towers.

Private ownership does reduce public financial transparency, but many fund-backed colocation providers still share necessary operational and financial details with customers. Moreover, infrastructure funds often enforce disciplined oversight and risk management, ensuring responsible capital deployment. Syndicated bank debt and credit ratings further bind these companies to rigorous reporting standards, adding layers of accountability.

A potential concern about “runaway expansion” from deep capital pools is addressed: infrastructure funds do not indiscriminately fund growth but instead scrutinize investment opportunities. Martynek argues that, from a customer perspective, the difference in ownership structure — public versus private fund-backed — is less critical than service quality, support, and operational performance. Overall, fund-backed colocation providers can be stable stewards of long-term workloads.