Introduction to Gigabit Fiber
Gigabit Fiber, a Downtown Dallas-based wireless internet infrastructure company, has secured a majority investment from the New York-based private equity firm Blue Owl Capital, the company announced on Monday. Under the terms of the deal, Blue Owl will take a 51% stake, Tom Spackman, Gigabit Fiber’s CEO, told The Dallas Morning News. The dollar amount of the deal was undisclosed, and Spackman declined to provide further insight on the price, although he said Gigabit Fiber management is staying in place and had signed five-year agreements related to the investment.
The Deal and Its Implications
“We’re going to use their expertise and capital to go leverage our business plan,” he said, “which is really supporting the large hyperscalers and data center projects that are happening all over the metroplex.”
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Gigabit Fiber’s Operations and Reach
Gigabit Fiber, a firm that’s based in Dallas’ old Federal Reserve Building at 400 S. Akard St., operates some 500 route miles of high-capacity fiber networks that connect more than 50 data centers. In addition to the Dallas-Forth Worth area, the company has a presence in Austin, El Paso, San Antonio and South Texas. The deal also has implications for D-FW’s broader push into artificial intelligence, because the vast computing power required to drive the technology comes from data centers. North Texas is rapidly emerging as a new national financial hub and has seen an influx of tech and AI-related infrastructure and economic activity. One recent report from the Brookings Institution found the region had added over 22,000 AI-related jobs last year and ranked 13th among U.S. metros for overall AI-based economic growth.
Blue Owl Capital and the Partnership
Blue Owl is a private equity investment firm and counts over $280 billion in assets under management. Internet software and services account for the firm’s largest asset category, at 11% of its portfolio, followed by health care and the food and beverage industry. In a statement, Chris Jensen, Blue Owl’s managing director of digital infrastructure, framed the deal as a partnership between the asset manager’s existing data center presence and Gigabit Fiber’s digital infrastructure capabilities. “Texas and New Mexico continue to be a region of incredible interest for our hyperscale customers,” he said.
Historical Importance and Modern-Day Role
Spackman drew a connection between D-FW’s historical importance as a major land connection and its modern-day role as an emerging cloud computing and data hub. “Dallas has been an interconnector dating back to the railroad,” he said. “This market is very important to the world ecosystem.”
Conclusion
The investment by Blue Owl Capital in Gigabit Fiber signifies a significant milestone in the development of Dallas-Fort Worth as a major hub for technology and artificial intelligence. With the region’s rich history as a connector and its current push into cloud computing and data centers, this partnership is poised to leverage the expertise and capital of both parties to support large hyperscalers and data center projects. As North Texas continues to emerge as a new national financial hub, deals like this underscore the area’s importance in the world ecosystem.
FAQs
Q: What is Gigabit Fiber, and what does it do?
A: Gigabit Fiber is a Downtown Dallas-based wireless internet infrastructure company that operates high-capacity fiber networks connecting data centers across several regions, including the Dallas-Forth Worth area, Austin, El Paso, San Antonio, and South Texas.
Q: Who has invested in Gigabit Fiber, and what are the terms of the deal?
A: Blue Owl Capital, a New York-based private equity firm, has invested in Gigabit Fiber, taking a 51% stake. The dollar amount of the deal was not disclosed.
Q: What are the implications of this deal for the region?
A: The deal has implications for D-FW’s broader push into artificial intelligence, as the computing power required for AI comes from data centers. It also signifies the region’s growth as a tech and AI hub, with over 22,000 AI-related jobs added last year.
Q: What is Blue Owl Capital, and what does it specialize in?
A: Blue Owl Capital is a private equity investment firm with over $280 billion in assets under management. It specializes in various sectors, with internet software and services being its largest asset category.
Q: Why is the Dallas-Fort Worth area important for this partnership?
A: The area is historically significant as a major land connection and is now emerging as a cloud computing and data hub. Its strategic location and growing tech industry make it an attractive region for hyperscale customers and data center projects.
