Market AnalysisJul 19, 20262 Min

Data center operator Csquare prices IPO at $21 per share: Here’s all you should know

Csquare Inc., a Dallas-based data center platform backed by Brookfield Corp., on Wednesday priced the shares in its initial public offering (IPO) at $21 each, aiming to raise about $1.05 billion.

Given the IPO size of 50 million shares of common stock, Csquare gets valued at $3.25 billion.

Csquare has also granted the underwriters a 30-day option to purchase up to an additional 7.5 million shares of common stock at the IPO price.

Notably, the Csquare IPO price of $21 is at a discount to the marketed range of $23-$27. This indicates that investors were cautious even amidst surging demand for data center capacity driven by cloud and AI boom.

Csquare’s heavy debt load and intense competitive landscape in the data center space may have worried investors. The company has roughly $850 million in outstanding borrowings. Most of this stems from a $771 million revolving credit facility and a $75 million promissory note to its key financial backer Brookfield Corp.

The company said that it expects to use the net proceeds from the offering to repay a portion of its outstanding indebtedness and to pay fees and expenses in connection with the offering.

This will help Csquare strengthen its balance sheet and enhance its ability to fund new projects, much like other data center companies that are tapping equity markets to finance expansion and reduce leverage.

The stock is expected to begin trading on the New York Stock Exchange under the ticker symbol “CSQR” on July 16. Markets are expecting a solid start as the stock gives investors an opportunity to bet on the AI infrastructure space where capacity demand is showing no signs of slowing.

Also, Brookfield potentially purchasing shares could provide further boost to the stock. Notably, Brookfield planned to participate by purchasing a portion of the IPO and will maintain a majority of the voting power, controlling about 67% of Csquare after the issue.

Founded in 2019, Csquare has built a sizable footprint of 64 facilities in just a few years. The company’s strategy of locating data centers in major metropolitan areas helps it compete against larger rivals.

Csquare says it operates data centers across the US, Canada, and the UK. The company delivers mission-critical infrastructure solutions to a diversified base of enterprise, network, cloud and technology customers.

The company had posted a net loss of $66 million in the three-month period ended March 2026 on a revenue of $270.5 million. Most of the company’s revenue is generated from recurring colocation and interconnection services, with contracts ranging 1-7 years.