Polar founders secure equity investment from H.I.G. Infrastructure

Fiorenzo Manganiello and Nessim-Sariel Gaon, co-founders of data center firm PolarDC Group, have secured capital investment from H.I.G. Infrastructure (“H.I.G.”) in a deal worth up to €500 million. The move signals the pair’s plans to further scale Polar and invest heavily in firms meeting the market demand for emerging technologies.

Polar develops, owns, and operates data center infrastructure targeting high-performance computing (HPC) applications, including AI. The Company has multiple data center facilities in Norway and is actively developing additional locations across Europe. Its first data center, located in southern Norway, will provide up to 48MW of IT capacity once fully operational.

The co-founders launched Polar in 2021 after identifying the rapidly growing demand for AI infrastructure. Anticipated debt financing of €350 million will bring the total value of the transaction to €500 million, with H.I.G. investing up to €150 million and gaining a majority stake in the Company. Manganiello and Gaon are excited to see what the future holds for Polar following this capital increase and look forward to working hand-in-hand with H.I.G. to further accelerate Polar's growth.

The development of AI technology is expanding the data center market rapidly and is predicted to drive a 160% increase in power demand by 2030 (Goldman Sachs). The amount of computing power that AI models consume generally doubles every six months (Epoch AI), and the demand outlook is robust, requiring data center operators such as Polar to continue to scale accordingly. The duo plan to continue expanding the Company in order to meet the growing demand and support the continuous development of innovation across the AI ecosystem.

Manganiello and Gaon will continue to play an essential role at Polar, retaining a minority stake through their investment firm, LIAN Group, which they also co-founded together in 2019. The pair will bring their years of expertise in digital infrastructure to support the Company’s next phase of growth, remaining close to its day-to-day operations.

LIAN Group is an investment firm with over $500 million of deployed capital across technology companies in digital infrastructure, AI, healthcare, and blockchain. Through LIAN Group, Manganiello and Gaon build and fund cutting-edge businesses, primarily across these sectors. Its co-founders plan to double down on this strategy in the near future and beyond.

H.I.G. Capital is a leading global alternative investment firm with $65 billion of equity capital under management. H.I.G.’s infrastructure strategy focuses on making value-add and core-plus investments in the infrastructure sector. Its investment in Polar and deep sector expertise will enable the Company to deliver on its near-term pipeline goals.

Nessim-Sariel Gaon, co-founder of Polar, said: “As AI technologies continue to strengthen their grip on the world, demand for well-equipped data centers will continue to skyrocket. We founded Polar because we envisaged that demand and wanted to be able to offer a solution that was sustainable, efficient, and scalable – we wanted to develop AI infrastructure that allowed new technologies to flourish. AI technologies are becoming increasingly sophisticated, with the potential to transform every sector. Its evolution requires more and more computing power, and we must be able to meet that demand. H.I.G.’s investment and experience will help accelerate Polar’s growth and pave the way for innovative HPC technologies across Europe. This is only the beginning.”

Fiorenzo Manganiello, co-founder of Polar, said: “Our intention with LIAN Group has always been to build and fund cutting-edge tech businesses that meet the market demand. Nessim and I have dedicated time, energy, and passion into making Polar a significant player in the data center space. We are ready for the next wave of AI’s development and are excited to partner with H.I.G. Their investment and operational expertise will help guide the Company through this next phase of its development. Looking ahead, we’re keen to develop other market leaders like Polar. We are constantly impressed with new and emerging innovations and eager to be a part of their journey.”

Andrew Liau, co-head of H.I.G. Infrastructure, said: “The team behind Polar has extensive experience operating and scaling data center infrastructure, a sector H.I.G. has a strong track record in. Our combined expertise will set the stage for the Company’s continued growth as it expands alongside the rising demand for data center infrastructure. We’re incredibly excited by this partnership.”