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Shining a light on PE ownership.

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GT

GTR

Data centers
PE-OWNED

PE-OWNED

Acquired by KKR

View PE Firm Profile

What PE Will Likely Do

Predictions

Significant increases in data center operating costs and prices for GTR's customers due to aggressive debt loading and cost-cutting measures

MODERATEBased on: KKR's track record of debt loading, cost-cutting, and aggressive financial engineering in acquired companies

Potential service disruptions and outages as GTR defers critical data center maintenance and upgrades

MODERATEBased on: The data center industry's high capital expenditures and maintenance requirements, which are often the first targets of PE cost-cutting

Decline in data center reliability, security, and energy efficiency as GTR prioritizes short-term cost savings over long-term infrastructure investment

MODERATEBased on: Precedents of PE-owned data center providers sacrificing reliability and quality to service debt, as seen in the bankruptcies of Envision Healthcare and other PE-backed companies

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Announcements about 'optimizing operations' and 'improving efficiency' at GTR's data centers

6-12 monthsYOU ARE HERE

“6 to 12 months months”

First round of staffing reductions and service contract renegotiations at GTR's data centers

12-24 months

“12 to 24 months months”

Noticeable increase in customer complaints about service quality, outages, and rising costs from GTR

24-48 months

“24 to 48 months months”

Potential acquisition or restructuring rumors as GTR struggles to service its debt load, further impacting customers

48-60 months

“48 to 60 months months”

Possible bankruptcy or fire sale of GTR's data center assets, leaving customers scrambling to find alternative providers

Similar Cases

Other companies that followed a similar path after PE acquisition

Operating

Data center acquisition company

Blackstone·N/A

See full case study
Operating

European data centre business

KKR·N/A

See full case study
Operating

WinTriX China Data Center Unit

Bain Capital·N/A

See full case study
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DigitalBridge

SoftBank·N/A

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Operating

European data center platform

KKR, Oak Hill·N/A

See full case study

What You Can Do

Take Action

Actions

  • Carefully monitor GTR's data center service quality and pricing changes, and be prepared to migrate to alternative providers if necessary

  • Advocate for regulatory oversight and consumer protection measures to limit the negative impact of PE acquisitions on critical infrastructure services

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"GTR is now PE-owned. Here's what that means for you."