Product1 distinct publisher3 min readUpdated
A $1bn platform seeded with ten converted Cogent facilities takes about a quarter of Cogent's installed power from ten of its 185 sites. The bet is on interconnection, not slab.
The Product Desk · Product desk

Compiled by The Product DeskSomething wrong?How this is made
I Squared Capital has launched a data center company called Saragon, backed by up to $1 billion in committed capital and seeded with ten facilities across nine US markets bought from Cogent earlier this year [1][2]. The seed portfolio carries roughly 53MW of installed power and 259,000 square feet of colocation space, which is a small number in a year of gigawatt announcements and a revealing one about where capital is now willing to go [4].
The sites are in Chicago, Atlanta, Phoenix, Los Angeles, Kansas City, Baltimore, Houston, Nashville and Stockton [3]. They were purpose-built in the 1980s and 1990s as switching sites for Sprint's legacy US long-haul fiber network [10]. After T-Mobile bought Sprint in 2020, the facilities and the network went to Cogent for $1 in 2022 [11]. Cogent then said it would convert around 100 of the switch sites into colocation, finishing the conversion earlier this year, before pivoting to sell or lease the largest 24 on a wholesale basis while retaining a slice of each for its own network [12][13].
That is the arbitrage. As of its most recent results, Cogent counted 185 data center and Edge facilities totaling more than 2.1 million square feet, 40,954 racks and 211MW [14]. Saragon's ten buildings represent about 25 percent of that installed power [1] at an average of 5.3MW per site against a Cogent portfolio average of roughly 1.1MW [2][3]. In other words, a fiber carrier sold the fat end of its own converted estate to an infrastructure fund and kept the thin end for network use [13][3].
Density is the pitch. Across 53MW and 259,000 square feet, the seed portfolio works out to about 205 watts per square foot [4], and Saragon says it aims to support high-density and liquid-cooled deployments plus interconnection-rich environments for AI inference, content delivery and hybrid cloud [5]. CEO Steve Orlando, who joins from Seaborn Networks after nearly six years running the Brazil-to-US Seabras-1 subsea system and earlier stints at Zayo, Level3, Verizon, MCI and Global Crossing, said demand for Edge capacity is accelerating across retail, enterprise and wholesale, and that AI inference is "the newest driver" of the same fundamentals behind content delivery and hybrid cloud [7][8]. That is a carrier resume, not a construction resume, and it matches the asset: buildings whose value is the fiber that already terminates in them.
The capital math says the seed is not the plan. Up to $1 billion against 53MW installed is roughly $19 million per existing megawatt [5], far more than anyone spends holding steady, and Saragon says it will scale through investment in the existing footprint, customer-led expansions and further acquisitions [6]. For I Squared, the $1 billion is about 1.7 percent of its $60 billion under management [9][6], added to a digital portfolio that already includes nLighten, BDx, Exa, Lightstorm, cell towers, Mexico's Kio and Brazil's Elea [9].
Watch whether the remaining wholesale-earmarked Cogent buildings find buyers on comparable terms, since Cogent flagged 24 of them and Saragon took ten facilities in total [13][2][7]. Watch, too, whether 5MW retrofits with liquid cooling actually book AI inference tenants, or whether the anchor demand stays content delivery and enterprise hybrid cloud [5][8]. The retrofit thesis only pays if power per building can rise inside walls poured for 1990s switching gear [10][4].
Follow any of these and your For You feed starts watching them — no settings page required.
Ranked by verification strength, evidence, and original report placement.
Investment firm I Squared Capital has launched a new data center company called Saragon.
Saragon is backed by up to $1 billion in committed capital from I Squared and has been seeded with ten data centers across nine US markets, acquired from Cogent earlier this year.
The portfolio spans Chicago, Atlanta, Phoenix, Los Angeles, Kansas City, Baltimore, Houston, Nashville and Stockton.
The seed portfolio has approximately 53MW of installed power capacity and 259,000 square feet (24,060 sqm) of colocation space.
Serving both retail and wholesale customers, Saragon said it aims to support high-density and liquid-cooled deployments as well as interconnection-rich environments for AI inference, content delivery and hybrid-cloud workloads.
Steve Orlando has been appointed CEO of Saragon. He joins from Seaborn Networks, where he spent nearly six years leading the operator of Seabras-1, the subsea cable system connecting Brazil and the United States, and has also had stints at Zayo, Level3, Verizon, MCI and Global Crossing.
Evidence-backed comparisons of source perspectives and observed adoption signals. Read the methodology
Which Builder, Operator, and Investor concerns the observed source mix emphasized—not a truth score.
Evidence, demonstrated adoption, hype gap, incentives, and confidence are assessed independently, each on its own current evidence. How these are measured.
Concrete asset figures, single company-sourced report
The cluster rests on one trade publication reporting a launch announcement. The physical facts it carries are specific and internally consistent (ten sites, nine named markets, 53MW, 259,000 sq ft, Cogent's 185 sites/211MW disclosure, the $1 2022 purchase from the Sprint estate), which supports a mid-range score. But there is no second outlet, no filing, no purchase price, and no customer or utilization data, so every forward-looking element is company-supplied and unverified.
Assets and capital in hand, customer demand undisclosed
Real-world adoption evidence is limited to ownership and construction events: a platform launch, a ten-site transfer of about 53MW, and Cogent's completed conversion of roughly 100 switch sites. These are material and dated, so adoption is not zero. But no tenant, contracted megawatt, occupancy figure, liquid-cooled deployment or inference customer is disclosed anywhere in the source, so the AI-inference use case has no observed uptake behind it.
AI inference framing outruns 53MW of converted switch space
The launch is presented as an AI inference and high-density platform, but the disclosed substance is ten 1980s/1990s telco switch buildings at roughly 205 watts per square foot, about 53MW total, with no customers, no liquid-cooled deployments and no retrofit detail. Most of the up-to-$1bn commitment corresponds to capacity that does not exist yet - about $19m per installed megawatt. The overstatement is in the workload narrative rather than in the numbers, which are reported plainly, so the gap is clearly positive but not extreme.
Sponsor-driven launch narrative on both sides of the trade
Every substantive quote and forward claim originates with parties who benefit from the framing: I Squared is standing up a platform it must deploy capital into and eventually exit, Saragon's new CEO is marketing launch capacity, and Cogent has an interest in the converted ex-Sprint estate being seen as valuable after buying the network for $1. The reporting outlet is trade press covering an announcement, with no adversarial or independent sourcing shown.
Facts firm, interpretation thin
Confidence is moderate: the countable elements of the story (sites, markets, megawatts, square feet, ownership chain, Cogent's totals) are reported specifically and the derived arithmetic follows directly from them. What lowers confidence is structural - one publisher, an announcement-driven origin, no purchase price, no customer or occupancy data, and no independent confirmation that the ten sites came from Cogent's designated wholesale 24.
product
Inference cost is now a storage and power problem, and it prices differently per workload1 distinct publisher
product
Marvell's $12.2bn warrant pays Google in Marvell stock, one $500m order at a time2 distinct publishers
invest
Meta's four MTIA generations show inference leaking from Nvidia one workload at a time1 distinct publisher
invest
AMD's Korea test lab is a bet that inference stops being a GPU-only purchase1 distinct publisher
Distinct publishers with included, body-backed reporting in this cluster.
1 article · August 20, 2026