Coppell-based Csquare valued at $3.2 billion after lukewarm stock market debut
The rising AI tide can only lift a boat so high.
Csquare, a Coppell-based provider of data center services, made its stock market debut Thursday, pricing its initial public offering below the target range it had filed with the U.S. Securities and Exchange Commission. It offered 50 million shares of common stock at $21, bringing its total market capitalization to $3.2 billion. Shares of Csquare were trading for $20.35 when the market opened Friday. It ended the day at $20.40.
In its Form S-1, initially filed confidentially, Csquare said it expected to sell its stock between $23 to $27 per share, but certain disclosures in the registration statement may have left investors reticent to buy the data center firm at quite that premium. Proceeds of the IPO, tabbed at around $1.05 billion, were expected to go nearly entirely to paying down debt, according to the filing, and the company had reported significant losses, albeit on growing revenue, in 2025 and the first quarter of 2026.
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Csquare, which recently rebranded from Centersquare, operates 80 data centers across the U.S., Canada and London, specializing in colocation, in which businesses purchase data center space and the support services to house their own servers. The company was created by Brookfield Asset Management in 2024 after it acquired Cyxtera out of bankruptcy in 2023 for $775 million. Brookfield, which has more than $1 trillion in assets under management, then combined Cyxtera assets with its other data center outfit, Evoque, positioning the resultant company to capitalize on the AI and related infrastructure boom. Brookfield still owns a majority of Csquare’s voting power.
Csquare made $987 million in 2025, improving on its revenue in 2024 by around $80 million. In the first quarter of this year, it improved revenue to $270 million, nearly 16% growth versus the same period last year. However, the company reported a nearly $120 million loss of income in 2025, and further losses of $66 million in the first quarter of this year, as interest expenses continue to grow.
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Nevertheless, the company outlined a growth strategy based on expansion within its existing data center locations and growing market adoption of the colocation model. Csquare identified 670 megawatts of opportunity in its portfolio, half based on equipment optimization and half from under-roof expansion, at a cost of $4 million to $8 million per megawatt. It intends to fund growth primarily through operating cash flows and, when appropriate, debt financing. Last October, Csquare acquired 10 data centers with $1 billion cash on hand.