Goldman Sachs has acquired Canadian data center firm QScale.

The investment firm this week announced that Infrastructure at Goldman Sachs Alternatives has closed the acquisition of the company in partnership with QScale's founders and management team.

Terms of the deal were not shared.

Martin Bouchard, QScale founder and CEO, said: “From day one, QScale was built around a simple thesis: the world will need vastly more compute, and it will need it to be clean, dense, and resilient. Partnering with Goldman Sachs Alternatives gives us the capital base and the global network to scale faster, build bigger, and serve the most demanding hyperscale and AI customers in the world. Our team made this possible, and this next chapter is about delivering on the opportunity ahead.”

QScale will continue to be led by its existing management team, who will remain shareholders in the business alongside Goldman Sachs Alternatives.

News that QScale was seeking new investment surfaced in February, with Goldman Sachs named as a potential suitor.

Leonard Seevers, partner at Goldman Sachs Alternatives, added: “AI is rapidly redefining the infrastructure requirements to deliver compute to consumers and enterprises at scale. We believe QScale is building to the highest standard to meet these complex needs, and we are excited to partner with Martin and the QScale team to accelerate their build-out and support Canada's emergence as a global hub for sustainable AI compute.”

QScale was founded in 2018, and has previously received investment from Aligned Data Centers and the Québec government.

It began construction on its first campus, QScale Q01, in Levis, Quebec, in 2021. The construction of the second building began in 2022. The site is expected to have 142MW of IT capacity at full build-out.

The company has also announced plans for a second facility in the Ecoparc de Saint-Bruno-de-Montarville, Montreal.

In this week’s announcement, Goldman Sachs said QScale is “actively developing additional campuses across Canada” to support accelerating customer demand.

Macquarie Capital and National Bank Capital Markets acted as financial advisors and Vinson & Elkins LLP and Stikeman Elliott LLP acted as legal counsel to Goldman Sachs Alternatives. Scotiabank and TD Securities acted as financial advisors and Fasken Martineau DuMoulin LLP acted as legal counsel to QScale and its shareholders.