Colovore has secured a USD $925 million debt facility through Blackstone to advance its expansion of AI-optimised, liquid-cooled data centres across the United States.
The company, which is backed by King Street, said funding is earmarked to accelerate growth from its current 10MW capacity to an expected 50MW through new data centres in locations including Reno, Chicago, and Austin. The initiative aims to address a growing need for scalable, high-density infrastructure to support inference-driven artificial intelligence workloads.
Colovore operates facilities designed for the increasing demands of modern AI technologies, with liquid cooling systems that enable cabinet densities greater than 200kW. The company's Santa Clara centre has been certified as the world's first NVIDIA DGX data centre, accommodating requirements from both enterprise customers and generative AI firms.
Sean Holznecht, President and Co-Founder of Colovore, said, "This Blackstone financing, along with the continued support of King Street, positions us well to continue scaling our footprint through the development of new liquid-cooled data centers, starting in Reno, Chicago and Austin. As AI infrastructure shifts rapidly toward highly distributed, inference-driven workloads, we remain focused on building the national backbone for this next phase—scalable, liquid-cooled data center platforms purpose-built for edge and core inference."
Holzknecht noted that the expansion is intended to address the transition toward edge inference and distributed AI applications, sectors where demand is rising due to the proliferation of enterprise and generative AI deployment.
Brian Higgins, Founder and Managing Partner of King Street, commented on Colovore's capacity to meet this growing demand. "With more than a decade of experience in liquid cooling, Colovore is uniquely positioned to provide infrastructure to meet the soaring demand for high-density, AI-optimised data centres. We look forward to further leveraging King Street's real estate and credit capabilities to support their rapid expansion."
Colovore's liquid-cooled data centre model departs from traditional infrastructure by enabling higher component density, increased energy efficiency, and support for standard and advanced AI processing hardware. Company representatives highlighted these capabilities as critical to meeting the requirements of newly evolving AI workloads in sectors including Fortune 500 enterprises and fast-growing technology firms.
The company, originally focused on supporting high-performance computing for specialised projects, now describes itself as a primary data centre partner for a range of customers, including those within mainstream enterprise AI deployment.
According to Colovore, its facilities can deliver power densities from 17kW to more than 200kW per cabinet, a capability enabled by their use of advanced liquid-cooling technology and supported by a management team with decades of experience in infrastructure operations. The firm intends to leverage this experience and operational approach as it expands into additional Tier I metropolitan markets.
Colovore's expansion comes as data centre operators adapt to the increasing power and cooling requirements posed by contemporary AI chips and the growing scale of machine learning initiatives, both in cloud and edge environments.
