DRFortress: Hawaii's Leading Data Center Acquired by 1547 & Harrison Street
Deal News | Apr 03, 2025 | GI Partners, LLC
fifteenfortyseven Critical Systems Realty (1547) and Harrison Street have jointly acquired DRFortress, Hawaii’s leading carrier-neutral data center, from GI Partners. GI Partners previously enhanced DRFortress's operational capacity significantly since acquiring a majority interest in 2020. This acquisition strengthens the strategic position of DRFortress as a critical digital interconnection hub in the Pacific, thereby enhancing connectivity for international markets, cloud providers, and submarine cable systems. The existing leadership team at DRFortress, including co-founders Fred Rodi and Rosa White, will continue to manage day-to-day operations with the aim to ensure continuity and further growth. The acquisition underscores both 1547 and Harrison Street's strategy of investing in core digital infrastructure to support demand for secure, high-capacity services. Bank Street Group, Paul, Weiss, Rifkind, Wharton & Garrison LLP, and DLA Piper were involved as advisors in the transaction.
Sectors
- Data Infrastructure
- Private Equity
Geography
- United States – The deal predominantly involves companies based in the United States, with DRFortress located in Hawaii and both acquiring and selling parties having significant U.S. presence.
- Hawaii – The transaction is centered around DRFortress, Hawaii’s largest carrier-neutral data center, emphasizing the importance of this location as a connectivity gateway in the Pacific.
Industry
- Data Infrastructure – The acquisition revolves around DRFortress, a data infrastructure provider, highlighting significant investment in data centers and digital connectivity solutions.
- Private Equity – GI Partners’ sale of DRFortress to 1547 and Harrison Street involves private equity transactions, showcasing the role of investment firms in developing digital infrastructure assets.
Financials
- $55 billion – Assets under management by Harrison Street at the time of the acquisition.
- $45 billion – Capital raised by GI Partners, demonstrating its investment resources.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| DRFortress | Target Company | Company | Hawaii's largest carrier-neutral data center, providing vital connectivity services across the Pacific. |
| GI Partners | Seller | PE Firm | The private investment firm divesting its majority interest in DRFortress after enhancing its operational capabilities. |
| fifteenfortyseven Critical Systems Realty (1547) | Buyer | Company | Acquiring firm focused on developing and operating highly interconnected data centers. |
| Harrison Street | Buyer | Investment Firm | Investment management firm specializing in alternative real assets with a significant focus on digital infrastructure. |
| Bank Street Group LLC | Financial Advisor | Company | Served as exclusive financial advisor to GI Partners and DRFortress during the transaction. |
| Paul, Weiss, Rifkind, Wharton & Garrison LLP | Legal Advisor | Company | Provided legal advisory services to GI Partners and DRFortress for the transaction. |
| DLA Piper | Legal Advisor | Company | Provided legal advisory services to 1547 and Harrison Street in the acquisition. |