Csquare

Data Centers · AI Infrastructure

IPO

Csquare debuts on NYSE at $3.24B, pricing IPO below marketed range

Nearly all the proceeds will repay debt from Brookfield's leveraged turnaround, not fund new AI data center capacity.

• Csquare priced its IPO at $21 per share, below the marketed $23-$27 range, raising $1.05 billion and valuing the Dallas-based data center operator at $3.24 billion in its July 16 NYSE debut.
• Formed in 2019 when Brookfield paired AT&T's former data center assets (Evoque) with bankrupt colocation provider Cyxtera in a 2024 merger, Csquare now runs more than 80 facilities totaling 3.5 million square feet and 400MW of capacity across North America and Europe.
• Nearly all the IPO proceeds are earmarked for debt repayment, including a $771 million revolving credit facility, $75 million in variable-funding notes, $250 million in asset-backed notes and a $75 million promissory note held by Brookfield itself.
• Csquare lost $66 million in the first quarter on $270.5 million of revenue, even as it projects first-half revenue growth of 14%-16% and adjusted EBITDA growth of 19%-25%.
• Brookfield pulled a $785 million distribution from Csquare last year, more than four times the company's $172 million of 2025 operating cash flow, shortly before taking it public.
• "Investors were not willing to support the marketed range, pointing to a selective buyer's market that is not simply taking anything with AI exposure at any cost," said IPOX Research Associate Lukas Muehlbauer.
• The debut follows SK Hynix's $26.5 billion U.S. listing and chip designer Cerebras Systems' IPO, part of a wave of AI-infrastructure listings testing investor appetite this summer.
• The below-range pricing signals investors are growing more discerning about AI-infrastructure valuations, rewarding profitability and balance-sheet health over exposure to the theme alone, even as capital markets stay open to the sector.