Boston-based real estate investment trust company American Tower Corporation just paid a little more than $154 million to acquire a telecommunications/data center business located in Orlando and Atlanta.
According to a recently recorded deed in Orange County, the 130,000-square-foot DataSite Orlando facility at 9701 S. John Young Parkway sold to JT Communications LLC, a Georgia-based company with a mailing address linked to American Tower’s headquarters. Richard Palermo, senior counsel at American Tower, was listed in the deed.
The deal marks American Tower’s entrance into the Orlando market, according to a news release about the acquisition. Further, the release states DataSite Orlando is “strategically located to complement the American Tower Edge Data Center in Jacksonville, opening additional connectivity avenues in Florida. Orlando also offers a vehicle for customers to conveniently connect to facilities in Miami that touch networks across Latin America.”
As part of the acquisition, American Tower gains responsibility for all management and operations of DataSite’s facilities, bringing the total number of American Tower’s data centers to nine.
The seller, JYP Orlando LLC, is a company managed by Jeff Burges, president and founder of DataSite, which is a wholesale data center space and network services provider. A separate company led by Burges bought the property in 2005 for $10.5 million, according to the Orlando Business Journal.
“DataSite is in good hands with American Tower,” Burges said in the release.
DataSite Orlando provides wholesale and retail level co-location space that offers a range of data center solutions. The seller invested over $26 million to expand its services and renovate the Orlando facility, which was formerly AT&T Data Center built in 1983.
According to a news release issued by the company in 2015, DataSite Orlando embarked on a multi-phase renovation plan that included providing additional megawatts of UPS power, additional megawatts of generator power and expanding its chiller plant, which was completed in 2014 to enhance cooling capabilities.
In 2017, the company announced it deployed a high-performance compute (HPC) system for a major hospitality corporation. The name of the hospitality client was not disclosed.
U.S. communications company American Tower is an independent owner, operator and developer of wireless and broadcast communications infrastructure. As of June, the company had 41,000 sites in the U.S. and 139,000 sites across 19 countries, including emerging markets like India, Latin America and Africa.
According to a second-quarter financial report, the company added nearly 27,000 sites through its Telxius Towers acquisition during the quarter. The move enhanced its presence in Europe, according to Tom Bartlett, CEO of American Tower. During the report, he said the company is seeking to capitalize on new opportunities associated with 5G.
EDITOR’S NOTE: This story has been updated to include details about the acquisition from a news release sent by the company after the article was published.