Data center provider TierPoint could be seeking an investment of $250m to $500m, Bloomberg reports.

A person close to TierPoint told the publication that the equity would be used expand the company’s presence in markets like Kansas, Nebraska, Missouri and Oklahoma, which are not near traditional Internet hubs.

tierpoint xand hawthorne exterior lead
TierPoint Hawthorne – TierPoint

Big money for small markets

The company already has three data centers in Missouri and Oklahoma, two in Nebraska and one in Kansas.

The company also has facilities in major markets like New York and Texas, but the majority of its data centers are in smaller markets.

Bloomberg’s source also said that is possible that TierPoint could be sold for more than $2.4bn.

But, a person close to the matter told CRN that: “The goal is not to sell the company, they have an opportunity to deploy more capital into the edge markets. As more computing functions move to the edge, they want to deploy more capital to the edge - that’s what this is all about.”

The St. Louis-based company operates more than 40 data centers in the US as well as providing colo, hosting, Iaas and disaster recovery services.

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