Migdal Invests $350 Million in US Data Center Firm EdgeConneX

Israeli financial group Migdal is investing $350 million (approximately 1.05 billion shekels) in the American data center company EdgeConneX. Since August 2020, EdgeConneX has been controlled by the Swedish infrastructure investment fund EQT, which acquired it in a $2.5 billion deal. EdgeConneX operates around 90 data centers across more than 20 countries, including locations in North America, Europe, Asia, the Middle East, and South America. Its clients include cloud service providers and AI companies, mostly under long-term contracts.

In parallel, the Canadian pension fund CPPIB announced plans to invest $1.75 billion in EdgeConneX. The company expanded into Israel in August 2021 by acquiring Global Data Center, a local operator, in a deal valued between $300 million and $400 million. Erez Migdalai, head of investments at Migdal Insurance and Finance, stated that this investment aligns with Migdal's focused strategy on infrastructure and data centers, particularly in cloud and AI support sectors, building on previous successful global platform investments.

Prior to this, Migdal invested about one billion shekels in data centers over recent years, including roughly 300 million shekels in 2023 in Switch, 292 million shekels in 2022 in CyrusOne, and 157 million shekels last year in Aligned Data Centers, which was later acquired by BlackRock.