TierPoint Secures $240M Funding, Acquires Pennsylvania Data Center Campus for Major Expansion

Major Acquisition and Expansion Plans

TierPoint has reportedly acquired its largest leased data center facility in Pennsylvania through a $240 million asset-backed securities (ABS) issuance, according to company announcements. The deal includes both the 122,000 square foot data center and the entire 137-acre campus in Breinigsville, commonly known as TekPark, which the company had previously operated under lease arrangements.

Major Acquisition and Expansion Plans
Substantial Power Expansion Underway
Strategic Growth Trajectory
Pennsylvania’s Emerging Data Center Market
Financing and Advisory Support

Sources indicate that net proceeds from the ABS transaction directly funded the property acquisition, significantly increasing TierPoint’s percentage of owned assets. The financing will also be used to refinance remaining ABS debt maturity due in 2026, according to the company‘s statements.

Substantial Power Expansion Underway

TierPoint has already begun a major 100MW power expansion at the newly acquired campus, with completion expected in the second half of 2026. The existing facility currently offers approximately 16MW of capacity across 122,000 square feet of data center space. Analysts suggest this expansion positions the company to capitalize on growing demand for artificial intelligence and GPU-accelerated workloads requiring advanced cooling solutions.

The report states that clients at the TekPark facility include large technology service providers deploying advanced cooling solutions specifically designed for compute-intensive applications. This aligns with broader industry trends toward supporting AI infrastructure requirements.

Strategic Growth Trajectory

According to TierPoint chairman and CEO Jerry Kent, “This new financing increases our owned assets and positions us to continue responding to client demand through our planned expansion in TekPark, with exceptional service, support, highly available and reliable operations.” The company reportedly continues to experience strong demand for its digital infrastructure solutions, including enterprise, wholesale, and high-density colocation services.

TierPoint’s growth strategy has involved both new construction and strategic acquisitions over the years. The company originally gained control of the TekPark data center through its acquisition of Xand in 2014, which had itself acquired the facility from DBSi in 2011. The site’s history dates back to 1987 when it served as a Bell Laboratory facility under AT&T ownership.

Pennsylvania’s Emerging Data Center Market

While Pittsburgh and Philadelphia have traditionally been Pennsylvania’s primary data center hubs, reports suggest the state is experiencing significant growth in new development proposals. According to analysis by DC Byte, Pennsylvania’s data center market has expanded dramatically from 231MW of total IT load in 2021 to approximately 7.8GW of planned load projected for 2025.

This growth trajectory reflects broader industry trends as companies seek to secure capacity for AI infrastructure build-outs. The Keystone State, while not historically a major data center market, has reportedly seen gigawatts of new capacity proposed in recent months to meet this escalating demand.

Financing and Advisory Support

The $240 million ABS issuance represents TierPoint’s continued access to capital markets for expansion funding. The company has now issued a total of $1.99 billion in asset-backed securities secured against a portfolio of 33 data centers, following previous transactions in 2023 and 2024 that included $500 million in ABS financing.

Guggenheim Securities, LLC acted as lead structuring advisor and placement agent for the securitized notes, while Jeffries LLC served as joint structuring advisor and joint bookrunner. Legal representation included Simpson Thacher & Bartlett LLP for TierPoint and Latham & Watkins LLP for Guggenheim, according to the financing documentation.

Reference: Data Center Infrastructure | Pennsylvania Business Climate | Asset-Backed Securities Explained

References

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