I Squared buys $225M Cogent AI inference platform data centers for 53MW

I Squared Capital agreed to buy a $225M data center portfolio from Cogent Fiber to build an AI inference platform. The deal covers 10 facilities with ~53MW installed power and 259,000 sq. ft. of colocation space across nine US markets, including Chicago, Atlanta, Phoenix, California, and Texas. I Squared plans to commit up to $1B in total capital for AI inference platform upgrades, customer-led expansion, and potential additional acquisitions. Cogent Communications will mainly use proceeds to reduce debt. Timing: the transaction still needs regulatory approvals and is expected to close in Q3 2026, with the earliest possible closing date of June 12, 2026. Crypto-trader relevance: the AI inference platform focus suggests demand shifting toward urban/edge-style capacity that can be retrofitted faster than traditional hyperscale sites. That could increase pressure on older, lower-flexibility inventory—potentially including space previously used by crypto mining—if rack space and power get reallocated to higher-margin AI tenants. Key risks include expensive, complex retrofits for high-density AI workloads and potential local power/grid constraints (including possible moratoriums on new data center construction). Overall, the news is more about infrastructure reallocation than an immediate catalyst for token prices, but it can shape longer-term sentiment around miners facing capacity and power limits.