Fengate Asset Management has increased its equity stake in Canadian digital infrastructure with a newly inked $1.8 billion investment in eStruxture Data Centers, a company currently providing carrier-neutral, co-location space in 15 data centres located in Montreal, Toronto, Vancouver and Calgary. The funding injection will underwrite expansion of eStruxture’s facilities and hyperscale resources in tune with surging demand for connectivity and capacity for artificial intelligence and machine learning.

“For years, Fengate has had a front-row seat to the meteoric success of eStruxture, and that intimate perspective gives us full confidence to continue our relationship through this next exciting growth phase,” says Lou Serafini Jr., president and chief executive officer at Fengate.

Fengate is investing on behalf of subscribers to its infrastructure funds and their affiliated entities, notably including the LiUNA Pension Fund of Central and Eastern Canada. eStruxture’s founder, president and chief executive officer, Todd Coleman, calls the deal a “transformative moment” for the company, and he’ll also be reinvesting his own holdings in the venture, as will Jonathan Wener, a member of eStruxture’s board of directors.

“Digital is a sector focus for our infrastructure business and increasing our investment in eStruxture is an exciting and significant step toward realizing our digital infrastructure strategy,” says George Theodoropoulos, managing partner at Fengate.