DigitalBridge Buys Yondr as AI Fuels Demand for Data Centers

(Bloomberg) -- DigitalBridge Group has agreed to buy British data center developer and operator Yondr Group as the investment firm seeks to profit from the boom in artificial intelligence.

Florida-based DigitalBridge, a major investor in digital infrastructure, made the purchase via one of its managed investment funds, the companies said in a joint statement on Monday. Financial details of the deal weren’t disclosed.

The competition between Big Tech companies to develop power-hungry AI systems such as large-language models has increased demand for data centers.

Companies including Microsoft Corporation, Alphabet’s Google, and Amazon Web Services are spending billions of dollars more on building and leasing new facilities filled with graphics processing units, the powerful chips required to build AI systems.

Yondr will continue to operate as an independent company within DigitalBridge’s portfolio. The deal is expected to close in early 2025. 

It’s not clear what this deal means for Abu Dhabi wealth fund Mubadala Investment Company, which in August said it was investing in Yondr. A spokesperson for Mubadala did not immediately respond to a request for comment.