Fiorenzo Manganiello and Nessim-Sariel Gaon, co-founders of data centre firm, PolarDC, have secured capital investment from H.I.G. Infrastructure (H.I.G.) in a deal worth up to €500 million.
The move signals the pair’s plans to further scale Polar and invest heavily in firms meeting the market demand for emerging technologies.
Polar develops, owns and operates data centre infrastructure targeting High-Performance Computing (HPC) applications, including AI. It has multiple data centre facilities in Norway and is actively developing additional locations across Europe.
Its first data centre, located in southern Norway, will provide up to 48MW of IT capacity once fully operational.
The co-founders launched Polar in 2021 after identifying the rapidly growing demand for AI infrastructure. Anticipated debt financing of €350 million will bring the total value of the transaction to €500 million, with H.I.G. investing up to €150 million and gaining a majority stake in PolarDC.
The development of AI technology is expanding the data centre market rapidly and is predicted to drive a 160% increase in power demand by 2030. The amount of computing power that AI models consume generally doubles every six months, and the demand outlook is robust, requiring data centre operators such as Polar to continue to scale accordingly.
Manganiello and Gaon will continue to play an essential role at Polar, retaining a minority stake through their investment firm, LIAN Group, which they also co-founded together in 2019. The pair will bring their years of expertise in digital infrastructure to support the next phase of growth, remaining close to its day-to-day operations.
LIAN Group is an investment firm with over US$500 million deployed capital across technology companies in digital infrastructure, AI, healthcare and blockchain. Through LIAN Group, Manganiello and Gaon build and fund cutting-edge businesses, primarily across these sectors. Its co-founders plan to double down on this strategy.
H.I.G. Capital is a leading global alternative investment firm with US$65 billion of equity capital under management. H.I.G.’s infrastructure strategy focuses on making value-added and core-plus investments in the infrastructure sector. Its investment in Polar and deep sector expertise will enable Polar to deliver on its near-term pipeline goals.
Nessim-Sariel Gaon, Co-founder of Polar, said: “As AI technologies continue to strengthen their grip on the world, demand for well-equipped data centres will continue to skyrocket. We founded Polar because we envisaged that demand and wanted to be able to offer a solution that was sustainable, efficient and scalable – we wanted to develop AI infrastructure that allowed new technologies to flourish.
“AI technologies are becoming increasingly sophisticated, with the potential to transform every sector. Its evolution requires more and more computing power, and we must be able to meet that demand. H.I.G.’s investment and experience will help accelerate Polar’s growth and pave the way for innovative HPC technologies across Europe. This is only the beginning,” added Gaon.
Fiorenzo Manganiello, Co-founder of Polar, said: “Our intention with LIAN Group has always been to build and fund cutting-edge tech businesses that meet the market demand. Nessim and I have dedicated time, energy and passion to making Polar a significant player in the data centre space.
“We are ready for the next wave of AI’s development and are excited to partner with H.I.G. Their investment and operational expertise will help guide the Company through this next phase of its development. Looking ahead, we’re keen to develop other market leaders like Polar. We are constantly impressed with new and emerging innovations and eager to be a part of their journey,” Manganiello added.
Andrew Liau, Co-head of H.I.G. Infrastructure, said: “The team behind Polar has extensive experience operating and scaling data centre infrastructure, a sector H.I.G. has a strong track record in. Our combined expertise will set the stage for the company’s continued growth as it expands alongside the rising demand for data centre infrastructure. We’re incredibly excited by this partnership.”
