Novacap and H5 Data Centers Launch HyscaleIX Data Centers and Announces Acquisition of Portfolio of Carrier Hotels from 365 Data Centers
Newly formed connectivity-focused data center platform will establish initial portfolio in four U.S. markets, including Buffalo, Nashville and Tampa
MONTREAL and BEVERLY HILLS, Calif., Feb. 02, 2026 (GLOBE NEWSWIRE) — Novacap and H5 Data Centers are pleased to announce the formation of HyscaleIX Data Centers (“HyscaleIX” or the “JV”), a joint venture focused on acquiring and operating mission-critical carrier hotels to deliver highly interconnected data center services throughout North America.
The JV will be anchored by four carrier hotel facilities, including three acquired from 365 Data Centers located in Buffalo, New York; Nashville, Tennessee; and Tampa, Florida, each of which represents the most carrier-connected data center in its respective market. The JV will also acquire a fourth facility in the Midwestern U.S. Each of the anchor assets hosts the local internet exchange and the portfolio provides an immediate operating presence across four established regional data center markets.
“The formation of HyscaleIX continues on our strategy of building a diversified portfolio of high-quality digital infrastructure assets,” said Ted Mocarski, Senior Partner and Head of Digital Infrastructure at Novacap. “Carrier hotels are highly sought after data centers that perform a critical role in core network ecosystems. Partnering with H5 allows us to combine experienced institutional capital with proven operating expertise as we execute on the platform’s growth strategy.”
“We are very excited to add these critical, highly interconnected carrier hotels to the HyscaleIX platform,” said Ryan Thom, Partner at Novacap. “They are mission-critical facilities with strong network ecosystems which we expect will continue to serve growing cloud, AI, network, and enterprise workloads alike.”
“This transaction reflects our continued focus on disciplined acquisitions and operational excellence,” said Josh Simms, CEO of H5 Data Centers. “This joint venture brings together institutional capital and deep operating expertise, and the anchor portfolio fits squarely within our focus on carrier density, connectivity, and facilities capable of supporting next-generation workloads.”
“365 is proud to have developed each of these data centers into the leading regional network hub and pleased that HyscaleIX, under the stewardship of H5 Data Centers and Novacap, is a customer focused, best-in-class operator,” said Derek Gillespie, CEO of 365 Data Centers. “The sales proceeds will further enable 365 to expand and deliver higher-density MW services at a number of our larger facilities.”
Bob DeSantis, Co-Founder and Board Member of 365 Data Centers, added, “This successful transaction for 365 aligns perfectly with the company’s and its investors’ strategic objectives and provides management with the financial flexibility to achieve them.”
HyscaleIX is the second joint venture between Novacap and H5 Data Centers. Last year, they announced the formation of Hyscale Data Centers, focused on providing wholesale data center colocation across four facilities in North America.
Fasken Martineau Dumoulin LLP and Hogan Lovells LLP acted as legal advisors and Willkie Farr & Gallagher LLP acted as financing counsel to Novacap and H5 Data Centers. TD Securities acted as financial advisor and Shipman & Goodwin LLP served as legal advisor to 365 Data Centers.
About Novacap
Novacap is a leading North American private equity investor and one of Canada’s most experienced private equity firms. Founded in 1981 to partner with visionary entrepreneurs, Novacap focuses on control buyouts of middle market and lower-middle market companies across four core strategies: Technologies, Digital Infrastructure, Industries and Financial Services. Novacap combines deep sector expertise and strategic and operational excellence to partner with entrepreneurs and management teams. Since its inception, the firm has made primary and add-on investments in more than 250 companies. With over US $10 billion in assets under management and a presence across offices in Montreal, Toronto, and New York, Novacap accelerates value creation through strategic growth initiatives and a strong focus on execution.
For more information, please visit http://novacapcorp.com.
About H5 Data Centers
H5 Data Centers is a leading owner and operator of data center properties across North America, delivering secure, reliable, and efficient colocation and wholesale solutions to enterprise, network, cloud, Ai and hyperscale customers. H5 is focused on operating critical infrastructure assets with long-term value, strong connectivity ecosystems, and best-in-class operational execution.
For more information, please visit www.h5datacenters.com.
About 365 Data Centers
365 Data Centers is a leading provider of hybrid data center solutions to more than 1,200 customers from 17 network-centric data centers in strategic markets. The company also operates a resilient, low latency, nationwide fiber network and four cloud regions. 365’s secure, reliable, colocation, network connectivity, internet access, DRaaS, BaaS, cloud computing and storage, and business continuity services help organizations reduce costs, drive innovation, and improve their customer experience.
For more information, please visit https://365datacenters.com.
For media inquiries:
Novacap
Renata Kappaun
Senior Advisor, Communications
rkappaun@novacap.ca
(514) 234-4152
H5 Data Centers
Jenna Baker
Jenna.Baker@h5datacenters.com
(303) 714-7805
