King Street-Backed Colovore Closes $925 Million Facility with Blackstone for AI Data Center Platform
Wednesday, May 14, 2025
Proceeds to accelerate Colovore's national expansion of AI-optimized, liquid-cooled data centers in major metro areas
SANTA CLARA, Calif., May 12, 2025 /PRNewswire/ -- Colovore, a leading owner and operator of ultra-dense, liquid-cooled data centers purpose-built for enterprise AI infrastructure in the metro edge, today announced the closing of a $925 million debt facility provided by Blackstone funds. This milestone marks a successful year for Colovore since affiliates of King Street Capital Management ("King Street") acquired the company to accelerate its development of new AI data centers across metro edge markets.
"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," said Sean Holznecht, President and Co-Founder of Colovore. "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."
Brian Higgins, Founder and Managing Partner of King Street, added "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-optimized data centers. We look forward to further leveraging King Street's real estate and credit capabilities to support their rapid expansion."
Unlike legacy data center architectures, Colovore's liquid-cooled facilities are designed from the ground up to support the intense demands of modern AI chips, offering market leading per cabinet cooling densities, smaller footprints, and improved efficiency. With flexible power and cooling configurations, Colovore supports everything from traditional enterprise hardware to the most advanced liquid-cooled AI accelerators. Colovore earned the distinction of being the world's first NVIDIA DGX-certified data center and supports a diverse range of customers from large enterprises to leading GenAI companies.
About Colovore
Colovore is a pioneer in ultra dense, liquid-cooled data centers, with over a decade of experience supporting next generation chips. The company designs and operates purpose-built infrastructure specifically engineered to support the intense power and cooling requirements of AI, machine learning, and high-performance computing workloads. Colovore's data centers deliver unprecedented power densities from 17kW to 200kW+ per cabinet through advanced liquid-cooling technology--a distinctive capability that has positioned the company at the forefront of the enterprise AI revolution. Initially serving organizations deploying specialized high-performance compute, Colovore has evolved to become the data center partner of choice for mainstream enterprise AI deployments, Fortune 500 companies, and fast-growing technology firms. With operations in Silicon Valley and active expansion into additional Tier I markets, Colovore is strategically scaling its footprint to meet increasing demand. Backed by a team that brings decades of infrastructure management expertise and a commitment to operational excellence, Colovore enables clients to optimize IT footprints, reduce total cost of ownership, and ensure long-term scalability in the AI era.
To learn more, visit: www.colovore.com.
About King Street Capital Management
King Street is a global alternative investment firm founded in 1995, managing over $28 billion in assets across public and private markets. The firm combines deep fundamental research with tactical trading expertise and differentiated sourcing capabilities to uncover dislocations and mispriced opportunities across asset classes and throughout the capital structure.
King Street Real Estate focuses on debt and equity investments in special situations and thematic platforms. Our special situations strategy identifies compelling risk-adjusted investment opportunities across the capital structure, in high-quality real estate assets in major markets. Our exclusive, thematic platforms are built around property sectors with compelling secular tailwinds. Since its inception, King Street has completed transactions totaling $20 billion in real estate securities and real estate-related investments.
For more information, please visit www.kingstreet.com. Follow King Street Capital Management and King Street Capital Real Estate on LinkedIn.
Media Contacts
Colovore
Tomek Mackowiak
tomek@colovore.com
King Street
Prosek Partners for King Street
pro-kingstreet@prosek.com
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SOURCE King Street Capital Management
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