Hastings Equity Partners Continues Investment in Attractive Data Center Industry
BOSTON, MA, January 9, 2024 – Hastings Equity Partners (“Hastings”), a preferred capital partner to founders of lower middle market businesses, is pleased to announce their investment in JSET Automated Technologies (“JSET”).
Founded in 2020 by Eric Tyo and John Sloan, JSET specializes in building automation systems, installation and repairs, and electronic engineering services for data centers. The company is headquartered in Columbus, Ohio, and serves numerous blue-chip data center clients across the Midwest.
Hastings’ recent investment in JSET highlights the firm’s continued focus in the data center space, which began in 2021 with their first direct investment in PowerCor Services, an electrical testing and engineering company that provides systems design, integration, commissioning, servicing, and retrofit services to data centers, industrial facilities, and the US Military. Hastings also invested in XS Telecom in January 2022, a national provider of essential communications infrastructure, offering voice and data network cable design, installation, and support solutions for large national data center companies and Fortune 500 clients.
The need for data centers has rapidly increased in recent years due to changing habits during the pandemic, such as tele-medicine appointments, remote work, the need for high-speed streaming, in addition to the growth of cloud-based technologies such as AI. This has led to an increase in construction, the need for more land, advanced cooling systems, and more electricity to support the physical infrastructure that is running around the clock.
“Northern Virigina has been a hub for the hyperscalers; however, these data centers are beginning to dot landscapes across the nation as AI has substantially increased data processing and storage requirements, putting immense pressure on energy resources in the region. The Columbus, Ohio market, specifically, has added nearly three million square feet of data centers and is among the top three fastest growing markets in the US,” said Joe Conlon, Managing Director at Hastings. “This is largely due to the reliable energy sources and favorable regulatory environment in the state. In June 2023, Ohio Governor DeWine announced an $8 billion investment by AWS to expand data center operation in the region, and Google is building three new data centers in the region resulting in over a $2 billion investment in Ohio – which JSET is well-positioned to benefit from.”
“We are excited to partner with Hastings’ who will help us position JSET as the market leading automation and controls service business focused on the data center market across North America”, said Eric Tyo, co-founder of JSET. “Through utilizing their experience and vast network, together we plan to secure additional customers, expand geographically, increase its labor resources, add complementary services, and target add-on acquisitions.”