Data center operator CyrusOne plans potential 2027 IPO, banks pitch for roles, sources say

• CyrusOne operates over 60 data center campuses across the United States, Europe, and Japan, positioning it in the growing AI infrastructure market
• The IPO would join a robust pipeline of data center offerings, including CoreWeave's planned $80 billion valuation IPO and Arm's offering potentially exceeding $50 billion
• KKR recently raised a record $19.2 billion infrastructure fund and launched Helix Digital Infrastructure with over $10 billion in committed capital for data center build-out

Summary

Key Development: CyrusOne, a data center operator owned by KKR and BlackRock's Global Infrastructure Partners (GIP), is preparing for an IPO potentially in 2027, which could raise approximately $5 billion and become one of the sector's largest public offerings.

Transaction Details: Investment banks including Goldman Sachs and Morgan Stanley pitched for IPO roles during meetings last week. Specific fundraising amounts and valuations have not been finalized, as discussions remain at early stages.

Company Background: KKR and GIP took CyrusOne private in 2022 in a $15 billion deal (including debt). The company operates over 60 data center campuses across the United States, Europe, and Japan. An IPO would allow the private equity owners to monetize their investment while providing capital to pay down expansion debt.

Market Context: CyrusOne joins a robust pipeline of data center IPOs driven by surging AI infrastructure spending:

• CoreWeave selected lead banks for an IPO potentially valuing the company at $80 billion (including debt)
• SoftBank-backed Arm is preparing a U.S. IPO with projected valuation exceeding $50 billion
• Brookfield-backed Coresite Realty raised over $1 billion in its IPO last month

Sector Momentum: Private equity and infrastructure investors are significantly increasing data center investments. KKR recently raised a record $19.2 billion for its latest infrastructure fund and launched Helix Digital Infrastructure in June with over $10 billion in committed capital specifically for data center build-out.

The timing reflects strong market demand for AI computing infrastructure and presents significant exit opportunities for financial sponsors in the data center sector.