Data Centre Business News and Industry Trends

PolarDC secures €500m equity investment

Fiorenzo Manganiello (left) and Nessim-Sariel Gaon (right), co-founders of data centre firm, PolarDC Group, have secured capital investment from H.I.G. Infrastructure in a deal worth up to €500 million (£418m). The move signals the pair’s plans to further scale Polar and invest heavily in firms meeting the market demand for emerging technologies. Polar develops, owns, and operates data centre infrastructure targeting high-performance computing (HPC) applications, including AI. The company has multiple data centre facilities in Norway and is actively developing additional locations across Europe. Its first data centre, located in southern Norway, will provide up to 48MW of IT capacity once fully operational. The co-founders launched Polar in 2021 after identifying the rapidly growing demand for AI infrastructure. Anticipated debt financing of €350 million will bring the total value of the transaction to €500 million, with H.I.G. investing up to €150 million and gaining a majority stake in the company. Fiorenzo and Nessim say that they are excited to see what the future holds for Polar following this capital increase, and they look forward to working hand-in-hand with H.I.G. to further accelerate Polar's growth. The development of AI technology is expanding the data centre market rapidly and is predicted to drive a 160% increase in power demand by 2030. The amount of computing power that AI models consume generally doubles every six months, and the demand outlook is robust, requiring data centre operators such as Polar to continue to scale accordingly. The duo plan to continue expanding the company in order to meet the growing demand and support the continuous development of innovation across the AI ecosystem. Fiorenzo and Nessim will continue to play an essential role at Polar, retaining a minority stake through their investment firm, LIAN Group, which they also co-founded together in 2019. The pair will bring their years of expertise in digital infrastructure to support the company’s next phase of growth, remaining close to its day-to-day operations. LIAN Group is an investment firm with over $500 million of deployed capital across technology companies in digital infrastructure, AI, healthcare, and blockchain. Through LIAN Group, Fiorenzo and Nessim build and fund cutting-edge businesses, primarily across these sectors. Its co-founders plan to double down on this strategy in the near future and beyond. H.I.G. Capital is a leading global alternative investment firm with $65 billion of equity capital under management. H.I.G.’s infrastructure strategy focuses on making value-add and core-plus investments in the infrastructure sector. Its investment in Polar and deep sector expertise will enable the company to deliver on its near-term pipeline goals. Nessim-Sariel Gaon, Co-Founder of Polar, says, “As AI technologies continue to strengthen their grip on the world, demand for well-equipped data centres will continue to skyrocket. We founded Polar because we envisaged that demand and wanted to be able to offer a solution that was sustainable, efficient, and scalable – we wanted to develop AI infrastructure that allowed new technologies to flourish. “AI technologies are becoming increasingly sophisticated, with the potential to transform every sector. Its evolution requires more and more computing power, and we must be able to meet that demand. H.I.G.’s investment and experience will help accelerate Polar’s growth and pave the way for innovative HPC technologies across Europe. This is only the beginning.” Fiorenzo Manganiello, Co-Founder of Polar, adds, “Our intention with LIAN Group has always been to build and fund cutting-edge tech businesses that meet the market demand. Nessim and I have dedicated time, energy, and passion into making Polar a significant player in the data centre space. We are ready for the next wave of AI’s development and are excited to partner with H.I.G. Its investment and operational expertise will help guide the company through this next phase of its development. Looking ahead, we’re keen to develop other market leaders like Polar. We are constantly impressed with new and emerging innovations and are eager to be a part of their journey.” Andrew Liau, Co-Head of H.I.G. Infrastructure, remarks, “The team behind Polar has extensive experience operating and scaling data centre infrastructure; a sector H.I.G. has a strong track record in. Our combined expertise will set the stage for the company’s continued growth as it expands alongside the rising demand for data centre infrastructure. We’re incredibly excited by this partnership.”

AVK to develop next generation of data centre engineers

As part of its ongoing commitment to developing the data centre industry's future talent pipeline, AVK, a supplier of power solutions for data centres in Europe, has announced the opening of its new AVK Academy. Located in Lenham, Kent, the AVK Academy is a dedicated centre of excellence designed to provide hands-on training and professional development for engineers at all stages of their careers. The AVK Academy is a cutting-edge training hub equipped with the latest technology, including full-size Rolls-Royce mtu engines and control system rigs. It offers practical, real-world experience in power generation, helping trainees develop the skills they need to excel in the field. The power generation industry is evolving rapidly, with growing demands for more efficient and sustainable solutions. To meet these challenges, AVK says that it is essential to cultivate skilled professionals who can drive innovation and maintain the high standards the industry requires. The AVK Academy addresses this need by providing structured training programmes that cater to various experience levels, from complete beginners to advanced engineers looking to enhance their skills. One of the Academy’s key features is its focus on hands-on learning. Trainees work directly with cutting-edge equipment and technology, gaining invaluable insights into the complexities of power generation. The training is comprehensive, blending classroom instruction with practical exercises that prepare participants for the diverse challenges they will face in the field. This approach not only builds technical expertise but also fosters a deeper understanding of the power generation landscape, setting the foundation for a successful career. For new talent, the Academy offers a unique entry point into the industry. Its Level 4 intake is specifically designed for those at the beginning of their careers, providing them with foundational training and mentorship. This programme goes beyond technical skills, emphasising the importance of safety, teamwork, and problem-solving - key attributes that are highly valued in our industry. Participants receive a well-rounded education that prepares them not just for their first job but for a long-term career with opportunities for growth and advancement. “The AVK Academy is more than just a training facility - it represents a strategic investment in the future of our company and the industry, and serves as a powerful tool for attracting new talent to the industry,” says Lynsey Partlow, Service Director, AVK. “By nurturing talent within a controlled, supportive environment, AVK is helping to build a pipeline of skilled professionals who will drive innovation in power generation while creating a clear pathway for education and career development - making the power generation field more accessible and appealing to a diverse range of aspiring professionals.” “The AVK Academy initiative aligns with AVK's broader mission to deliver innovative and sustainable power solutions that meet the needs of the company's customers, everywhere,” adds Ben Pritchard (pictured above), CEO, AVK.” By equipping AVK's engineers with the skills and knowledge they need at a time of unprecedented industry growth, the company is strengthening its ability to provide reliable, cutting-edge services and creating a culture of continuous learning and development that permeates every level of AVK's organisation.”

Underinvestment blamed for IT security compliance failures

Companies are failing to achieve continuous IT security compliance because they are allowing their procurement processes to become outdated, according to new research from Vertice, a SaaS and cloud spend optimisation platform. Vertice surveyed 300 global procurement leaders to rate their business purchasing processes across seven key areas, and to also rate their ability to maintain continuous IT compliance - and discovered a clear correlation between an organisation’s procurement maturity and the businesses’ security. Vertice's Procurement Impact Report reveals that businesses with an optimised and automated procurement function see a 20% improvement in achieving compliance compared to those with manual and decentralised processes. Alarmingly, only one in six (18%) companies have made the necessary improvements, which include adding automated internal and external compliance checks to procurement request intake forms, along with pre-approved suppliers and intelligently adding suitable compliance stakeholders to the approval process. Meanwhile the remaining 82% of businesses - whose procurement processes are instead manual, undefined and inconsistent - all struggle to maintain continuous IT and security compliance. The findings also indicate that procurement leaders are struggling to control shadow IT without intelligent procurement processes in place, with 30% reporting that employees frequently bypass IT and procurement checks to adopt new suppliers. This issue is particularly prevalent in the US, where over one-third (34%) of leaders worry that maverick spending will become increasingly challenging unless their procurement functions are modernised. Vertice’s report discovered that the US is significantly lagging behind the UK, with almost half (44%) of businesses in the lowest maturity levels, whereas two-thirds (67%) of UK businesses are in the more advanced stages of procurement maturity with more reliance on automation, AI and integrations. Despite the significant benefits that procurement maturity brings to companies, many leaders are facing a growing number of risks and challenges when establishing high-performing procurement functions. Worryingly, 37% of respondents say that procurement is not a strategic priority versus other initiatives, and 35% say their organisation is not willing to invest in the skills to tackle the issue. Eldar Tuvey, CEO and Founder of Vertice, says, “Procurement is an important catalyst to business compliance; the secret weapon that often goes unnoticed. Quick, intelligent, integrated processes can equip teams faster, and without compromising safety and compliance. But most procurement departments have been unable to mature their outdated, manual processes, throttling the businesses’ progress and putting compliance at risk.” Among other benefits, Vertice’s research found that businesses with the most advanced procurement processes are: • 34% faster to deploy innovative projects• 29% faster in bringing new products and services to market• 27% more efficient than their peers• 22% more effective in controlling budgets (Compared to those relying on manual, decentralised and reactive processes). To help procurement teams accelerate their maturity, deliver strategic impact quicker and support compliance better, Vertice today launched Intelligent Workflows, a procurement orchestration tool built to simplify and accelerate purchasing processes, and ease the manual burden on busy procurement teams. Intelligent Workflows introduces smart, pre-emptive decision-making into the procurement process - including automated pre-approvals and routing, and simplified but accurate compliance - and also granular control and visibility into every ongoing purchase, renewal and intake. Eldar continues, “Modern procurement teams’ roles are increasingly broad and complex. And in fast-growing or rapidly-changing businesses, procurement processes aren’t always keeping up - meaning procurement teams are finding themselves filling in the gaps manually. It’s a step back for procurement when the business is trying to make leaps forward. “Intelligent Workflows is the boost these teams need. Our new procurement orchestration tool brings automation and intelligence to the purchasing process, by eliminating manual approval routing and re-routing, anticipating bottlenecks, and reducing the daily workload for procurement teams - all while improving control and speed of outcomes. For more from Vertice, click here.

Cerabyte secures investment from Pure Storage

Cerabyte, a provider of ceramic-based data storage solutions, has announced a strategic investment from Pure Storage, the IT pioneer that delivers an advanced data storage platform, to help enable sustainable immutable data storage solutions. Additionally, John (Coz) Colgrove, Founder and Chief Visionary Officer of Pure Storage, joins Cerabyte’s Board of Directors. Cerabyte’s vision is to store all data virtually forever and preserve today’s digital records for future use through the use of its ceramic data storage technology. With Pure Storage delivering the platform to store, manage, and protect the world's data, this strategic investment in Cerabyte will enable the company to extend this mission further. “Pure’s investment in Cerabyte and joint partnership will allow us to offer our customers sustainable and immutable data storage solutions that are revolutionising the industry,” says John (Coz) Colgrove, Founder and Chief Visionary Officer, Pure Storage. “By disrupting the archival storage market, we are paving the way for longer lasting and easier to manage long-term storage.” Cerabyte enables a new tier of accessible, permanent, and sustainable data storage that is projected to extend from petabyte to exabyte-scale data centre racks. The persistent media technology can hold data for extremely long periods of time while consuming no power. “The complex global needs of zettabyte-scale archival storage have been poorly served with expensive solutions that consume an inordinate share of the world’s available energy,” says John Monroe, Chief Analyst at Furthur Market Research. “The storage industry is ripe for transformative disruption. In concert and conjunction with tape, new technologies such as Cerabyte’s will be required to provide viable and cost-effective solutions to enterprise customers’ crucial challenges with the security, immutability and sustainability (SIS) of their vital data.” Cerabyte’s ceramic-based data storage does not suffer from bit rot or silent corruption, which threatens data integrity over time. Instead, it provides an immutable record of the original data required in an increasing number of use cases, especially in the era of AI. “As the industry is heading towards the Yottabyte Era, sustainable data storage — which eliminates the need for data migration and thereby scales down the energy footprint and TCO — will be critical to harness the data tsunami ahead,” notes Christian Pflaum, CEO, Cerabyte. “We are thrilled to partner with Pure Storage to commercialise ceramic data storage and welcome John to our Board of Directors.” For more from Pure Storage, click here.

Schneider Electric announces new training programme

Schneider Electric has announced the launch of its Schneider Electric Training programme in the UK and Ireland (UK&I). Schneider Electric’s vision in the UK&I is to create a best-in-class approach to training, unifying specialist academies, courses, and digital campuses into a holistic offering named Schneider Electric Training. The move is in response to the chronic skills gap in engineering and the vital role that training plays in addressing the growing complexities associated with digital transformation. The extensive programme covers everything from AI, the automation of machinery and equipment, to innovations in power and energy management, and safety standards and regulations. Schneider Electric Training will provide customers, partners, and engineers with a single point of access to the vast array of training options and resources available, covering Schneider Electric solutions, industry focused courses, and professional accreditations. It will be delivered via several specialist academies for in-person courses and a digital campus offering on-demand courses for Continuing Professional Development (CPD) via the mySchneider portal. Two academies are already up and running, with three more due to be launched by the end of the year. The Safety Academy in Telford offers a range of Schneider Electric and professional training courses to ensure the safe operation of electrical equipment and site safety, including Competent Person certification and City & Guilds assured Authorised Person training. The Automation Academy in Coventry offers a comprehensive curriculum covering Schneider Electric’s automation portfolio. It is designed to take students from basic product understanding through to advanced programming of both legacy and current technology, including Programmable Logic Controllers (PLC), Variable Speed Drives (VSD), Human Machine Interfaces (HMI), Motion Control and Robotics. David Pownall, VP Services at Schneider Electric UK and Ireland, comments, “Organisations are becoming more dependent on their electrical backbone to support operations, digital transformation, automation, and manufacturing. Electrical engineers and their specialist expertise are critical to the installation, safety, and maintenance of this electrical infrastructure. “There is an urgent need to build skills to embrace new technologies, drive modernisation, improve performance, reduce downtime, and comply with changing safety regulations. Not only that, but training is critical to career enhancement and a key foundation of a positive employee experience, attracting and retaining people when we’re facing a significant skills gap crisis. “Smarter engineers, equipped with the skills needed today and a clear development path to build expertise for the future, make for smarter businesses.” For more from Schneider Electric, click here.

CTERA announces growth investment from PSG Equity

CTERA, a provider of hybrid cloud data management solutions, has raised $80 million (£61.4m) in primary and secondary funding from PSG Equity, a growth equity firm focused on software and technology-enabled services companies. As part of the transaction, Ronen Nir, Managing Director at PSG, has joined CTERA’s board of directors alongside existing shareholders Benchmark, Bessemer Venture Partners, and Red Dot Capital Partners. CTERA, named the top Leader and Outperformer in the GigaOm Distributed Cloud File Storage Radar for three consecutive years, combines an edge-accelerated global file system across public and private cloud environments with AI-based ransomware protection and data intelligence services. CTERA is at the core of hybrid cloud initiatives at some of the world’s largest banks, healthcare organisations, global media groups, and government agencies, in deployments that scale to tens of petabytes. Unstructured data is a critical component of any enterprise storage strategy, representing about 80% of organisational data distributed across branch offices, endpoints, on-premises, and cloud data centres. Within this space, hybrid cloud file storage is one of the fastest-growing segments. According to Gartner, “By 2027, 60% of I&O leaders will implement hybrid cloud file deployments, up from 20% in early 2023.”. The proliferation of AI technology helps make unstructured data management more crucial than ever before, as data access is needed not only for users and applications, but also for AI workflows. The new enterprise AI platforms depend on timely access to corporate data for training models and for augmented data retrieval to ensure relevance and accuracy. “We believe CTERA is setting the standard for the modern hybrid data platform, with military-certified security and unparalleled performance,” says Liran Eshel, Founder and Chairman of the Board of CTERA. “The strategic partnership with PSG will enable us to further drive our expansion while delivering top service to our customers, and implement our vision for AI data services.” “This investment is evidence of CTERA's robust business model and the opportunity it represents,” adds Ronen Nir, Managing Director, PSG. “We are excited to partner with CTERA as it embarks on capturing what we believe will be an inflection point in the hybrid cloud data market, leveraging both organic and inorganic opportunities to strengthen CTERA’s position and deliver even greater value to its customers.” For more from CTERA, click here.

Madison River invests in data centre company

JMadison River Capital (MRC), a lower middle market private equity firm, has announced the completion of a $190 million (£146.8m) recapitalisation of and $70 million (£54.1m) equity investment in JDC Power Systems (JDC), a leading electrical systems integrator exclusively serving the data centre market. This transaction marks MRC's second investment in the past seven months, following its spin out from the family office of Tony James, the former Executive Vice Chairman of Blackstone. Headquartered in Armonk, New York, JDC specialises in providing technical services and equipment to customers in the data centre market. JDC is an integrator of customer design, engineering, procurement, installation, start-up, commissioning and warranty, for mission-critical power and control systems. The company’s expertise in coordinating with utility power grids minimises the risks of redesigns, delays, or system failures. "We were drawn to JDC because of its impressive track record of delivering highly technical solutions and innovative products that provide significant competitive advantages in the growing data centre industry," says David Wittels, Managing Partner and President of MRC. "We are excited to partner with Joe, Richard, and their talented team to support the company's continued growth and enhance career opportunities for its employees," notes Matthew Clancy, Principal at MRC. "We are delighted to collaborate with Madison River Capital, whose investment acumen and operational expertise will be instrumental in supporting JDC's growth trajectory," adds Joe Mastromonaco and Richard Corbin, Co-Founders of JDC. "We look forward to leveraging MRC's capabilities to better serve our customers and capitalise on the immense growth opportunities in the data centre market.” As part of the transaction, Kenneth Brown, a Senior Managing Director at MRC, has been appointed Chairman, and Grace Niland has been appointed Chief Human Resources Officer of JDC. Kenneth has over 20 years of senior executive experience, including serving as a Group President of Roper Industries and in multiple executive roles at Schneider Electric (formerly known as Invensys) prior to joining MRC. Grace most recently served as Director of Human Resources for Corning, and she previously spent over 25 years with Raytheon Technologies (formerly known as United Technologies Corporation) in various human resources leadership roles. Kenneth and Grace are both members of MRC's seasoned team of operating executives, who bring industry-specific best practices and best-in-class cross-functional expertise to MRC’s portfolio companies. This team also includes Derek Irwin, Jeff Winter, and Jennifer Steeves-Kiss.

Nasuni announces strategic growth investment

Nasuni, a leading enterprise data platform for modern hybrid cloud environments, has announced a strategic growth investment led by Vista Equity Partners, a global investment firm focused exclusively on enterprise software, data, and technology-enabled businesses. Vista will be joined by TCV and KKR in the new investment, which values Nasuni at approximately $1.2 billion (£940m). The investment will build on Nasuni’s strong momentum disrupting the legacy storage industry to further accelerate product innovation and commercial expansion in the global hybrid cloud market. Further terms of the transaction were not disclosed. “At Nasuni, we care first and foremost about the success of our customers, partners, and employees,” says Paul Flanagan, CEO of Nasuni. “We are maniacal about our commitment to delivering quality in every aspect of our business and interaction with our customers. This investment and our strategic partnership with Vista, TCV, and KKR will allow us to build upon that commitment, scale with purpose and continue to innovate as we look to take Nasuni to the next level.” Nasuni’s success to-date includes award winning technology, top decile customer retention rates, industry leading NPS scores, and a consistent 30% growth rate in a market that is rapidly expanding with the advent of hybrid cloud and AI. Nasuni’s data platform is used by over 850 companies spanning 70 countries, and is in use by some of the largest enterprises in the manufacturing, consumer goods, and energy industries. “Nasuni’s platform offers a highly differentiated approach to consolidating, protecting, and managing data at scale with performance that is critical to supporting AI applications and other high-volume data use-cases,” adds Martin Taylor, Co-Head of Vista's Foundation Fund and Senior Managing Director. “We are thrilled to partner with the Nasuni team as they work to help businesses optimise their expanding and complex data needs with solutions that are fast, secure and highly cost-effective.” BofA Securities served as the exclusive financial advisor and Goodwin Proctor LLP served as legal advisor to Nasuni. Kirkland & Ellis LLP served as legal counsel to Vista and TCV. KKR is making the investment through its Next Generation Technology III Fund. For more from Nasuni, click here.

NordicEPOD secures investment from Eaton and CTS Nordics

NordicEPOD, a manufacturing firm that specialises in the fabrication and integration of standardised power modules designed for the data centre industry, has successfully secured a strategic commercial investment from both CTS Nordics, a dedicated data centre design and build company, and Eaton, the global intelligent power management company. NordicEPOD helps reduce the complexity, cost and lead times associated with the construction of new data centres, which is vitally important for its customers as the industry undergoes surging growth. Each EPOD, built to the same standard design, contains all the critical power, backup, cooling and control systems, such as Uninterruptible Power Supplies (UPSs), switchgear and power distribution that can support the supply of up to 2MW of electrical power. The EPOD is engineered and placed between the power grid and the data centre’s critical IT infrastructure that it protects. All EPODs that leave the factory will be fully digitally enabled and receive Level 1 to 3 Commissioning, allowing for superior integration and operations. Morten Molven, General Manager, NordicEPOD, comments, “We are delighted to be partnering with Eaton. Their global reach and commitment to NordicEPOD will help us to upscale significantly, so that we can manufacture with security of supply and ensure our clients’ project requirements are fully met. Eaton’s current and evolving technology is the perfect fit for our EPOD design.” CTS Nordics is a dedicated data centre design and build company that specialises in new building design and construction methods. They provide data centre operators in the Nordic region a standardised and rapidly deployable, cost-effective approach for the design, construction and commissioning of data centres. As a result of this agreement, output from the existing NordicEPOD factory in Oslo will be increased with immediate effect, and a larger factory in Oslo will open in August to service a current orderbook through its capacity of over 500MW of EPODs per year. Plans for a further factory in Europe, at a location yet to be confirmed, are already under discussion. Ciarán Forde, Vice President, Strategic Accounts and Alliances at Eaton, notes, “NordicEPOD already belongs to our xModular partner programme, and this deal cements that relationship. What is unique is how CTS Nordics and NordicEPOD have aligned to positively disrupt the status quo and drive new levels of value to data centre operators. Both companies were formed to serve, and focus entirely on, the data centre industry. This has shaped how they operate and has resulted in engineered solutions like none other. This is the level of innovation and scale needed to meet the market needs.” For more from Eaton, click here.

Veeam launches cyber resilience education programmes

Veeam Software, a provider of data protection and ransomware recovery products, has announced that new technical training and certification programmes are available through Veeam University, a service which delivers Veeam technical training to IT professionals on-demand anytime, anywhere. The new online offering is the result of a global partnership with Tsunati, a Veeam-accredited service partner, which is helping to provide on-demand, technical certification training for partners and customers worldwide. Veeam University says that it offers maximum flexibility and an immersive, engaging learning experience in a self-paced format. Its approach includes clickable labs that can be accessed 24/7, video-based demos, and technical deep dives which allow students to effectively absorb concepts and prepare for real-world cybersecurity and disaster recovery scenarios. Completion of on-demand courses offered through Veeam University qualify learners for Veeam certification exams, including Veeam Certified Engineer (VMCE). “Knowledge is critical in a world where every organisation is facing cyberthreats,” explains Mike Blanchette, Vice President, Global Sales Acceleration at Veeam. “Cyber resilience is the marriage of the right technology to protect and recover your systems and data should the worst happen, with the skills and knowledge to configure, build, and run that technology safely. “Through these new investments in Veeam University, we are preparing people to tackle any cybersecurity challenge they face and enabling cyber resiliency. Our partnership with Tsunati enables us to provide innovative technical training and certification programmes in a flexible format that best suits the learner." Tsunati is a professional services and integration company specialising in data protection, Cloud computing, and multi-tenant virtualisation. Recognised as Veeam Accredited Service Partner of the Year for 2022, Veeam believes that Tsunati has changed the world of product training, education and certification. Through its proprietary Solution Education Enablement (SEETM) framework, customers receive practical training and the critical knowledge transfer required to effectively implement and maintain cutting-edge data protection solutions powered by Veeam. "We are thrilled to join forces with Veeam in revolutionising technical certification training for data protection," says Stoney Hall, CEO of Tsunati. "This partnership represents a synergy of our expertise in Solution Enablement Education (SEETM) and Veeam’s industry-leading data protection and ransomware recovery solutions. Together, we aim to empower professionals with the knowledge and skills required to navigate the evolving landscape of data security effectively." New technical professional training for Veeam partners is available through the Veeam ProPartner portal, while newly updated customer technical education and certification programmes are available separately through Veeam Technical Education Services. More details on Veeam University can be found at veeamuniversity.com. For more from Veeam, click here.