Cequel III, an investment firm with focus in the telecom business, has started a data center business, which has subsequently bought a colocation facility in Dallas.

Cequel Data Centers acquired data center service provider Colo4Dallas, gaining the company’s 68,000 sq ft data center. Colo4Dallas will become Colo4 and act as a subsidiary of Cequel Data Centers. Paul Estes of Cequel III, who is now president and CEO of Colo4, said in a statement that the investment firm anticipated growth opportunities in the data center business and was looking at additional acquisitions in the future.

Cequel III established Cequel Data Centers together with Thompson Street Capital Partners, a private equity firm. Both companies are based in St. Louis, Mo. The third partner is a New York-based private equity firm Charterhouse Group. This is Charterhouse’s fifth investment together with Cequel III during the two companies’ 25-year relationship.

Debt financing for the acquisition was arranged by RBC Capital Markets.