- What A deal for 280 acres in Milton by Compass Datacenters is now off
- Why The company was concerned about its ability to access power at the site
- What next The land could still be of interest to a major data-centre developer if power issues are addressed
Compass Datacenters’ proposed deal to acquire two parcels of agricultural land in Milton, Ont., is off the table, Green Street News can reveal.
As Green Street reported in June, Compass — owned by Brookfield Infrastructure Partners and Ontario Teachers’ Pension Plan — had offered $220m to acquire 280 acres of land at Putzer Nursery, a 450-acre site at 7314 Sixth Line, with plans to construct a 300-megawatt data centre. However, the deal imploded in July.
A Compass spokesperson told Green Street News that the company “walked away from the transaction at this time for reasons specific and confidential to Compass.”
A spokesperson for the nursery said Compass, based in Dallas, called off the deal over concerns it could get sufficient power at the site. “They didn’t get the hydro allocation they were looking for,” the spokesperson said.
Insiders said Putzer had grown frustrated as Compass extended its due-diligence period to evaluate options for power at the site.
“It was taking forever to get a definitive answer, and I think the seller was tired of being dragged on,” a broker familiar with the deal told Green Street News.
Compass’s bid for the site was worth approximately $2m/acre, meaning a deal would have been among the most expensive land purchases for data-centre development in Canadian history. The “unicorn” land parcels in Milton were prized for their proximity to a nearby power transmission station and an overall power capacity in the area of 3,000 megawatts with room for expansion.
Power concerns also scuppered Microsoft’s interest in the nursery land. The company had looked at Putzer as the site for a future data centre, but decided to pass on making a bid, sources said in June.
