Grain Management has taken a stake in the owner of data center firm Prime DC.

The digital infrastructure-focused private investment firm this week announced that it has completed a significant preferred equity investment in Data Realty Holding Corp., the founding and controlling shareholder of Prime Data Centers.

Full terms of the deal were not shared.

Grain said the investment provides structured, long-term capital to optimize the Prime’s capital structure and position the platform for its next phase of expansion.

Prime has 7GW of operational and planned capacity across the US and Europe, including Chicago, Phoenix, Austin, Pittsburgh, Los Angeles, Silicon Valley, Frankfurt and Berlin (Germany), Helsinki (Finland), Esbjerg (Denmark), and Madrid (Spain).

Investors in the company include Macquarie Capital, Ares Management, Siemens Financial Services, Snowhawk, and Nuveen.

"Given Grain's sector expertise across the digital infrastructure landscape and long-standing relationship with Prime, I am pleased to welcome them as a partner," said Nicholas Laag, founder and CEO of Prime. "This partnership represents a crucial step in Prime's continued growth as we expand within our existing markets and pursue new development opportunities."

Founded in 2007, Grain is a private investment firm focused on communications infrastructure with some $12 billion in assets under management. It previously acquired Alaskan fiber provider Quintillion and managed service provider Spectrotel, and owns or has stakes in a number of data center, fiber, tower, and spectrum companies.

"We are delighted to partner with Nicholas and the proven management team at Prime, whose vision aligns with Grain's conviction in the long-term growth of digital infrastructure," said Raghav Nayar, managing director and co-head of US Investments at Grain. "Prime has built a differentiated platform at the intersection of accelerating cloud and AI demand, and our ability to engage directly and structure a tailored investment underscores the advantages of a focused, sector-driven approach grounded in discipline and strong management alignment."

Kirkland & Ellis LLP acted as legal counsel, and TD Securities acted as financial advisor to Grain. Guggenheim Securities, LLC, and Moelis & Company, LLC acted as joint financial advisors, and Simpson Thacher & Bartlett LLP acted as legal counsel to Prime.