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Data Center Investments

Aphorio Carter

Aphorio Carter is led by an experienced team of data center real estate experts who specialize in managing alternative investments, sourcing accretive acquisitions in high-growth markets, and developing systematic real estate support services to add long-term value.

Data Center Investments

Aphorio Carter

Aphorio Carter is the critical infrastructure and data center division of Carter Funds investing in technology-related real estate throughout the U.S. supported by the increasing use, storage, and transmission of digital data.

Investing in Critical Real Estate that Powers the Digital Age

Uncovering opportunity in the real estate supporting the internet, cloud, smart technology and AI.

What Is A Data Center?

A data center houses computer systems and associated components like telecom infrastructure, servers, and storage. It stores, processes, and manages vast amounts of digital data, supporting applications, databases, and critical business information. Businesses, governments, and any entity needing secure data access rely on data centers.

Designed for high security and resilience against threats like theft, fire, and cyberattacks, data centers ensure continuous operation with redundant power, cooling, and backup network infrastructure for optimal uptime and availability.

A data center houses computer systems and associated components like telecom infrastructure, servers, and storage. It stores, processes, and manages vast amounts of digital data, supporting applications, databases, and critical business information. Businesses, governments, and any entity needing secure data access rely on data centers.

Designed for high security and resilience against threats like theft, fire, and cyberattacks, data centers ensure continuous operation with redundant power, cooling, and backup network infrastructure for optimal uptime and availability.

A variety of data center types and service models exist, classified based on ownership (single or multiple organizations), integration into existing data center topologies, the computing and storage technologies employed, and their energy efficiency levels. These are the types of data centers Aphorio Carter invests in:

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A data center houses computer systems and associated components like telecom infrastructure, servers, and storage. It stores, processes, and manages vast amounts of digital data, supporting applications, databases, and critical business information. Businesses, governments, and any entity needing secure data access rely on data centers.

Designed for high security and resilience against threats like theft, fire, and cyberattacks, data centers ensure continuous operation with redundant power, cooling, and backup network infrastructure for optimal uptime and availability.

A variety of data center types and service models exist, classified based on ownership (single or multiple organizations), integration into existing data center topologies, the computing and storage technologies employed, and their energy efficiency levels. These are the types of data centers Aphorio Carter invests in:

  • Enterprise data centers
  • Wholesale data centers
  • Colocation data centers
  • Switch centers
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Untitled design - 2024-04-08T235037.271
Untitled (700 x 899 px) (6)
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Types Of Data Centers

A variety of data center types and service models exist, classified based on ownership (single or multiple organizations), integration into existing data center topologies, the computing and storage technologies employed, and their energy efficiency levels. These are the types of data centers Aphorio Carter invests in:

These are built, owned, and operated by companies and are optimized for their end users. Most often they are housed on the corporate campus.

These data centers are managed by a third party (or a managed services provider) on behalf of a company. The company leases the equipment and infrastructure instead of buying it.

In colocation ("colo") data centers, a company rents space within a data center owned by others and located off company premises. The colocation data center hosts the infrastructure: building, cooling, bandwidth, security, etc., while the company provides and manages the components, including servers, storage, and firewalls.

A switch center connects any station in a communications system with another station. Switch centers are essential for complex data transfer systems and transmissions.

What Makes Data Centers Good Investments?

Data centers offer several characteristics which may make them an attractive investment option:

Mission-Critical Infrastructure

Properties that are “essential” to a tenant’s success and typically serve as a key asset in the tenant's revenue generation activities.

Credit-Worthy & Long-Term Tenants

Many tenants are Fortune 500 companies or national/regional operators supporting these companies and have long-term triple-net leases in place which provides a stable income stream.

High Renewal Rates

The average shell investment ranges from $250-$350 per square foot, with tenants usually investing 2-3 times that in infrastructure. Renewal rates often surpass 95%, ensuring predictable revenue streams for easier forecasting and management.

Historically Stable

Data centers have been historically stable, as witnessed during the COVID-19 pandemic. The usage of cell phones, credit cards, the internet, and other data center-dependent devices are not affected during economic downturns.

Inflation Hedge

Annual rent escalators are typically built into data center tenant leases, which tend to be long-term leases.

Limited Supply

Lending for speculative developments is virtually nonexistent, forcing developers into an all-equity capital stack. Data centers require significant upfront capital investment, which creates high barriers to entry for new competitors. This severely limits new projects and keeps supply muted.

Skyrocketing Demand

With the exponential growth of digital data, data centers have become essential for storing, processing, and managing large volumes of data. The increasing reliance on cloud computing, big data analytics, and the Internet of Things (IoT) is driving the need for more data centers.

Scalability

Data centers can be easily scaled up or down to meet changing demand, making them a flexible investment. As demand for data storage and processing increases, data centers can expand their capacity to meet this demand, providing investors with growth opportunities.

Current Portfolio

5
Properties
409K
Total Square Feet
$186M
Assets Under Management
100%
Portfolio Occupancy

A History Of Success

01

Industry Leading Team

Aphorio Carter's leadership team is an industry leader in US data center acquisitions, having sourced, negotiated, acquired, and managed nearly $5.3B of assets since 2010. Through their extensive market experience, they have access to significant “off-market” dealflow , which accounts for approximately 50% of the existing pipeline.

03

Focused Sector Expertise

Our team has deep expertise in the data center sector, allowing us to provide specialized insights and tailored solutions.

02

Unlocking Value

Our deep industry connections and expertise enable us to identify synergies and opportunities that may not be immediately apparent to others, driving additional value. By actively leveraging our network, we can navigate the complex and rapidly evolving data center landscape with confidence.

04

Our Strategic Relationships

We have cultivated an unparalleled network of strong, personal, and strategic relationships with decision-makers in the industry. This competitive advantage gives us early access to high-quality assets, enabling us to act quickly and confidently to secure the best opportunities, even before they come to market.

01

Industry Leading Team

The Fund's leadership team is an industry leader in US data center acquisitions, having sourced, negotiated, acquired, and managed nearly $5.3B of assets since 2010. Through their extensive market experience, they have access to significant “off-market” dealflow , which accounts for approximately 50% of the existing pipeline.

02

Unlocking Value

Our deep industry connections and expertise enable us to identify synergies and opportunities that may not be immediately apparent to others, driving additional value. By actively leveraging our network, we can navigate the complex and rapidly evolving data center landscape with confidence.

03

Focused Sector Expertise

Our team has deep expertise in the data center sector, allowing us to provide specialized insights and tailored solutions.

04

Our Strategic Relationships

We have cultivated an unparalleled network of strong, personal, and strategic relationships with decision-makers in the industry. This competitive advantage gives us early access to high-quality assets, enabling us to act quickly and confidently to secure the best opportunities, even before they come to market.

Aphorio Carter Leadership Team

Our team’s professional experience includes holding C-level and executive leadership roles at top commercial real estate and data center companies, including:

A full-service national real estate investment, development and advisory firm with a 59-year history of success, and trusted partner of Apple, Inc. as a developer of data centers.

A commercial real estate investment company which sponsored non-traded REITs with portfolios totaling more than $3.8 billion in aggregate contract purchase price, including over $2 billion in data center assets.

Landmark Infrastructure Partners LP has been involved in excess of $25 billion of total real estate acquisitions and financings since 1985. The group has worked to develop telecommunications and smart cities with its data center assets. In May 2021, Digital Colony announced its plans to acquire the majority of Landmark Infrastructure Partners’ data center assets in a deal valuing the company at approximately $1.0 billion.

A communications infrastructure company which was acquired by publicly-traded Uniti Fiber LLC, Inc. for $230 million in 2016. Its fiber network consists of 90,000 fiber strand miles in service across 15 states in the Southeast.

Global Signal, Inc. owned, operated, and leased towers and other communication structures for wireless communications. Owned by Fortress, Global Signal was acquired by Crown Castle International Corp. in 2007.

A pioneering American computer company that was founded in 1957 and based in Maynard, Massachusetts. They created one of the most successful and widely used computers of all time that shook the computer industry, creating the first low-cost alternative to the costly mainframes produced by IBM. DEC also developed the technology that was the precursor to the modern internet and created one of the most successful early search engines, AltaVista. DEC was acquired in 1998 by Compaq, now Hewlett-Packard, in what was at that time the largest merger in the history of the computer industry.

John Regan
Chief Investment Officer

“The digital infrastructure industry continues to grow with many favorable fundamentals despite current economic conditions.”

John Regan serves as CIO of Aphorio Carter and has been in the technology and facilities infrastructure space for over three decades. His experience includes:

Our team’s professional experience includes holding C-level and executive leadership roles at top commercial real estate and data center companies, including:

A full-service national real estate investment, development and advisory firm with a 59-year history of success, and trusted partner of Apple, Inc. as a developer of data centers.

A commercial real estate investment company which sponsored non-traded REITs with portfolios totaling more than $3.8 billion in aggregate contract purchase price, including over $2 billion in data center assets.

Landmark Infrastructure Partners LP has been involved in excess of $25 billion of total real estate acquisitions and financings since 1985. The group has worked to develop telecommunications and smart cities with its data center assets. In May 2021, Digital Colony announced its plans to acquire the majority of Landmark Infrastructure Partners’ data center assets in a deal valuing the company at approximately $1.0 billion.

A communications infrastructure company which was acquired by publicly-traded Uniti Fiber LLC, Inc. for $230 million in 2016. Its fiber network consists of 90,000 fiber strand miles in service across 15 states in the Southeast.

Global Signal, Inc. owned, operated, and leased towers and other communication structures for wireless communications. Owned by Fortress, Global Signal was acquired by Crown Castle International Corp. in 2007.

A pioneering American computer company that was founded in 1957 and based in Maynard, Massachusetts. They created one of the most successful and widely used computers of all time that shook the computer industry, creating the first low-cost alternative to the costly mainframes produced by IBM. DEC also developed the technology that was the precursor to the modern internet and created one of the most successful early search engines, AltaVista. DEC was acquired in 1998 by Compaq, now Hewlett-Packard, in what was at that time the largest merger in the history of the computer industry.

John Regan
Chief Investment Officer

“The digital infrastructure industry continues to grow with many favorable fundamentals despite current economic conditions.”

John Regan serves as CIO of Aphorio Carter and has been in the technology and facilities infrastructure space for over three decades. His experience includes:

Working With Some of The Best

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There are a number of significant risks that should be considered and reviewed when considering an investment in real estate or real estate securities. These risks may have significant legal, financial, and tax consequences to an investor and should be considered carefully in consultation with such investor’s applicable advisors. Any such investment is suitable only for investors who have adequate financial means, desire a relatively long-term investment, who will not need liquidity from their investment, and can afford to lose their entire investment. Private placements are speculative.