Nordic data center firm atNorth is set to be acquired by Equinix and the Canada Pension Plan Investment Board (CPP) in a $4.2 billion deal.

Current owner Partners Group said on Friday it had agreed a deal to sell atNorth in a transaction with an enterprise value of $4 billion.

News that Equinix had won the race to buy atNorth was first reported on Thursday. Under the agreement, CPP will put $1.6 billion of its funds into the company, and own 60 percent of the company’s shares, with Equinix taking the other 40 percent. The total financing package behind the deal is worth $4.2bn, underwritten by a group of European and Canadian lenders.

Eyjólfur Magnús Kristinsson, atNorth CEO, described the deal as “a powerful validation of atNorth’s journey.”

He said: “It further illustrates the strategic importance of the region as Europe’s rising AI powerhouse. I’m extremely proud to announce the next step in our chapter, welcoming this investment from CPP and Equinix, which will enable access to capital, global enterprise, and hyperscale relationships, and supply chain strength required to scale at pace.

“Our strategy remains firmly rooted in the Nordics, and we will continue to operate independently under the atNorth brand, preserving our dedication to the communities where we operate and the culture and values that have defined our success to date.”

AtNorth was formed as Advania Data Centers in 2012 from three components: Skyrr, a public sector IT specialist in Iceland; Kerfi, a Swedish outfit with roots in a Nokia spin-off called Datapoint, and Hands from Norway.

The company de-merged from the Advania Group in 2017 and rebranded to atNorth in 2020. Swiss investment manager Partners Group acquired the company in December 2021.

It currently operates seven data centers across Sweden, Iceland, and Finland, with more in development in Finland, Denmark, Sweden, and Norway. Equinix said atNorth has a pipeline of data centers in operation and under construction equating to 800MW of capacity, and has a secured power bank of 1GW to energize new data centers.

“The scalable sites of atNorth are very complementary to Equinix’s connectivity services and global footprint. Combined with our joint focus on sustainability, this acquisition is expected to enhance our ability to help customers unlock the full potential of the Nordics’ expanding digital landscape,” said Bruce Owen, president for EMEA at Equinix.

Equinix and CPP are already working together on data center projects. October 2024 saw the pair launch a $15bn joint venture to develop hyperscale data centers in the US under Equinix’s xScale brand.

Partners Group’s Ismail Afara said: “We have implemented a truly entrepreneurial value creation plan with atNorth, capitalizing on a period of unprecedented growth in the European data center industry. We thank atNorth’s management team for their remarkable partnership on this journey. The company’s vision is more critical than ever: to offer more compute for a better world. We congratulate CPP Investments and Equinix as they partner with the company and management team. We are excited to reinvest alongside them for the next chapter of growth.”

It had previously been reported that Digital Realty was in the running against Equinix to acquire atNorth.