North Texas data center firm valued at $3.2B after lukewarm stock market debut
Coppell-based data center provider Csquare made its stock market debut, pricing its initial public offering below its target range and achieving a $3.2 billion valuation. The IPO proceeds are primarily designated for debt repayment, despite the company reporting losses amid growing revenue. The company plans to fund future growth through existing cash flows and debt financing, capitalizing on demand for AI infrastructure.
Csquare, a Coppell-based data center services provider, debuted on the stock market after pricing its initial public offering (IPO) at $21 per share, below its projected range of $23 to $27. This debut resulted in a market capitalization of $3.2 billion. The company, which recently rebranded from Centersquare, offered 50 million shares, with the approximately $1.05 billion in proceeds largely intended for paying down debt.
Created by Brookfield Asset Management in 2024 through the acquisition of Cyxtera and its combination with Evoque, Csquare operates 80 data centers across the U.S., Canada, and London. Despite reporting significant losses of $120 million in 2025 and $66 million in the first quarter of 2026, the company saw increasing revenue, reaching $987 million in 2025 and $270 million in Q1 2026. Csquare outlined a growth strategy focused on expanding within its existing portfolio, identifying 670 megawatts of opportunity through optimization and under-roof expansion, with funding primarily from operating cash flows. The article also notes the broader data center industry faces challenges, including local opposition over resource concerns and moratoriums on construction in some areas, such as New York, which could impact the industry's financials.