RadiusDC, a provider of highly connected, innovative and resilient data center solutions, announced that it has entered into a definitive agreement to acquire the Phoenix data center and colocation business of phoenixNAP, located in Phoenix, Arizona. The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions and regulatory approvals.
The transaction includes the existing Phoenix colocation facility, interconnection infrastructure, and development rights for future campus expansion, which will establish RadiusDC’s Phoenix I campus, combining an existing operational data center with a planned expansion supported by committed utility capacity.
Approximately 80% of phoenixNAP’s global business, including phoenixNAP’s Bare Metal Cloud and network service platforms, will continue to be independently owned and operated by phoenixNAP and its existing management team and phoenixNAP will remain a tenant in the Phoenix facility.
At closing, RadiusDC will commence an expansion at the existing facility, DC1, to increase its total IT power capacity to 8 megawatts. RadiusDC will also advance development of a second facility, DC2, planned to support up to 18 megawatts of additional critical capacity, with initial phases expected to come online beginning in the first half of 2028. Together, these developments position the Phoenix I campus to scale to approximately 26 megawatts of total critical IT power capacity over time.
By combining an established interconnection environment, existing operational infrastructure, and significant expansion capability, the Phoenix I campus offers end users a scalable development platform in one of the fastest-growing data center markets in the United States.
“This acquisition strengthens RadiusDC’s national platform and expands our ability to serve customers in one of the country’s most important connectivity markets,” said Mike Krza, Chief Executive Officer of RadiusDC. “The Phoenix facility adds a highly established interconnection ecosystem with a strong, diverse customer base and significant expansion capacity. By integrating this campus into our broader portfolio, we enhance our ability to deliver scalable infrastructure in key metropolitan markets — while maintaining the operational continuity customers rely on today.”
Upon closing, the current on-site operations will join RadiusDC and continue to deliver uninterrupted service to existing customers at the facility.
“We are pleased to partner with RadiusDC on the transition of our Phoenix colocation business,” said Ian McClarty, President of phoenixNAP. “This transaction allows phoenixNAP to focus on its core services while ensuring the facility continues to grow under an experienced data center operator. We look forward to ongoing collaboration and continued service for our customers.”
The Phoenix campus will expand RadiusDC’s presence in key U.S. markets, including Miami, Atlanta, Denver, Nashville, and Indianapolis, and strengthen the company’s strategy of combining established connectivity ecosystems with new development capacity in major metropolitan locations.
J.P. Morgan served as financial advisor to RadiusDC, and Gibson Dunn & Crutcher LLP together with Snell & Wilmer LLP served as transaction and local counsel, respectively, to RadiusDC. BofA Securities served as exclusive financial advisor to phoenixNAP, and Cleary Gottlieb Steen & Hamilton LLP served as legal counsel to phoenixNAP.
