Fengate Asset Management’s acquisition of a majority stake in eStruxture Data Centers was awarded Digital Infrastructure Acquisition of the Year in North America. Judges were impressed by the scale and impact of the deal on the Canadian market.

One judge said: “It is a great deal and impressive that it’s one of the largest deals in Canada in the digital space.”

While another member of the independent judging panel said: “The transaction has a measurable impact on digital and overall infra market in Canada.”

Toronto-based Fengate invested C$1.8 billion ($1.3bn) in eStruxture for a majority stake. At the time of financial close, the deal was the single biggest investment ever made in the Canadian data center sector.

Fengate’s investment enables the expansion of eStruxture’s existing portfolio of 15 state-of-the-art facilities across Canada to meet the soaring global demand for data storage driven by artificial intelligence (AI) and machine learning. Fengate’s investment included capital from a group of institutional secondary investors co-led by Partners Group and Pantheon.

The investment is being made through 3 funds, including:

• Fengate Infrastructure Fund III
• Fengate Infrastructure Fund IV
• LiUNA’s Pension Fund of Central and Eastern Canada

The submission said: “This transaction plays a pivotal role in advancing Canada’s digital economy by fueling the growth of technology hubs in key markets nationwide. With eStruxture’s capacity set to expand significantly over the next 3-5 years, the company is poised to position Canada as a global leader in developing next-generation digital ecosystems.”

eStruxture has 15 locations in:

• Montreal
• Toronto
• Calgary
• Vancouver

Advisers to eStruxture include:

• DH Capital – financial
• Davies Ward Phillips & Vineberg – legal
• KPMG – tax

Advisers to Fengate include:

• Campbell Lutyens – financial
• Kirkland & Ellis – legal
• Stikeman Elliot – legal
• Leo Berwick – tax