New platform to accelerate the growth of Element Critical and meet the rising AI-driven data center demand

Element Critical today announced the launch of a new U.S. data center platform backed by 26North Partners (“26North”), Arctos, Mercuria and Safanad, anchored by the acquisition of two enterprise data center facilities in Houston and Austin.

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Logos of Mercuria, 26North, Element Critical, Arctos and Safanad

The platform builds on Element Critical's track record as a rapidly expanding enterprise data center operator, positioned to meet growing demand driven by AI inference, digital workloads and power-constrained markets. Safanad has spent the past decade developing Element Critical into one of the nation’s leading enterprise data center providers. With 26North, Mercuria and Arctos, the platform will accelerate acquisitions, development and strategic expansion across top U.S. markets.

“Through this investment and data center acquisition strategy, Element Critical will be well-positioned to support the needs of leading clients in technology, financial services, healthcare, energy and Fortune 500 companies,” said Element Critical CEO Ken Parent. “These Texas facilities will anchor our expansion into other top U.S. markets.”

“Digital infrastructure is precisely the kind of opportunity our next-generation alternatives firm was built to pursue,” said 26North Founder Josh Harris. “As AI, energy and data converge, we see an opportunity to support platforms with strong fundamentals and durable demand. We pride ourselves on aligning with innovative leaders such as Mercuria, Safanad and Arctos, who each bring complementary strengths, and structuring a partnership that traditional models can’t match.”

The partnership combines 26North’s thesis-driven alpha creation expertise and disciplined investment approach with Mercuria’s deep knowledge of energy markets and low-carbon power. It also brings together Safanad’s decade of operating experience and Arctos’s well-established track record of providing bespoke capital solutions.

“The intersection of AI, data, and energy is reshaping infrastructure demands. Our investment reflects Mercuria’s commitment to supporting digital infrastructure with innovative energy solutions,” said Mercuria’s CIO Brian Falik. “We’re partnering with industry leaders to power Element Critical’s expansion and help meet the evolving needs of enterprise clients.”

“We are proud to launch this next phase of Element Critical with partners who share our conviction in digital infrastructure and the evolution driven by AI,” said Safanad Founder and CEO Kamal Bahamdan. “Over the past decade, we have built Element Critical into a scaled, resilient platform and this new partnership readies us to grow even more rapidly.”

The partners aim to meet the surging demand from enterprises and the substantial capacity needs of AI inference and other next-generation technologies across financial services, healthcare, energy, technology and other sectors.

“We are thrilled to join forces with 26North, Mercuria and Safanad to catalyze Element Critical’s next stage of growth,” said Arctos Partner Ira Shaw. “With a customer-centric approach in colocation, Element Critical has firmly established itself within a thriving sector. This partnership marks a significant milestone for Arctos and our Keystone Real Assets strategy, as we invest into the future of digital infrastructure.”

Guggenheim Securities and Goldman Sachs acted as financial advisors to Safanad and King & Spalding acted as legal advisor. DLA Piper served as legal advisor to 26North. Kirkland & Ellis acted as legal advisor to the platform in connection with acquisitions of the Houston and Austin data centers. BofA Securities and Citizens Bank served as Joint Lead Arrangers and Joint Bookrunners, and Huntington National Bank served as Joint Lead Arranger for the transaction financing.

About Element Critical

Founded in 2014, Element Critical is a premier data center operator in the United States. Led by an experienced executive team and supported by long-term investment partners, the company operates hybrid-ready, carrier-neutral facilities in Houston, Austin and Chicago and is actively expanding across key Tier 1 and Tier 2 markets. Element Critical serves a diverse mix of enterprise, hyperscale, AI and neo-cloud customers that require colocation and connectivity services capable of supporting both traditional workloads and GPU-intensive AI environments. The company focuses on building reliable, well-connected data centers that meet today’s performance demands while anticipating the infrastructure needs of next-generation technologies.

About 26North

26North Partners LP is an integrated, multi-asset-class investment platform that provides investment advice and opportunities to its clients across a variety of investment strategies, including, but not limited to, private equity, credit, and insurance and reinsurance solutions.

The 26North team brings decades of experience managing third-party capital to help clients achieve their financial goals while making a lasting impact in the communities where they operate.

Since launching in late 2022, 26North has grown to approximately $32 billion in assets under management.

About Mercuria

Established in 2004, Mercuria is one of the world’s largest independent energy and commodity groups, bringing efficiency to the commodity value chain with technology, expertise, and low-carbon solutions. The company established itself as a leader in the energy transition by pledging more than 50 percent of new investments toward renewables and transitional energy. The Group has made significant investments in renewable power, energy storage, grid optimization, critical transition minerals recycling, and environmental products.

About Safanad

Safanad is a principal-led investment company that builds world-class businesses. We deliver enduring value by investing with conviction, operating with an athlete’s discipline, and aligning with our management teams and investors to grow great businesses for the long-term. Safanad owns investment and operating platforms in Digital Infrastructure, Education, Healthcare, and Real Estate and we are co-headquartered in New York and Riyadh.

For more information, please visit www.safanad.com.

About Arctos

Arctos is a private investment firm designed to catalyze growth and unlock value in complex, illiquid, and underserved markets. Founded in 2019, the firm’s investment businesses span private equity and real assets (Arctos Keystone) and premier sports franchises (Arctos Sports), delivering bespoke capital solutions, differentiated insights, and purpose-built operating capabilities to industry leaders in both markets. The firm’s innovative approach is anchored by its unique quantitative research and data science platform, Arctos Insights. Arctos has a team of more than 75 investment and operational professionals with expertise across industries, geographies, and economic cycles. The firm is headquartered in Dallas, with office locations in New York, Boston, and London. For more information, visit www.arctospartners.com or Arctos’ company page on LinkedIn.

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