US Signal acquires second data center in Indianapolis market

The acquisition of an Indianapolis data center will position network connectivity and data center services provider US Signal Co. LLC for strategic growth, executives say. 

The Grand Rapids-based US Signal recently acquired a 9,600-square-foot, 2-megawatt facility on Morenci Trail in Indianapolis, marking the company’s second data center in that market and its ninth total across the Midwest. Terms of the deal were not disclosed. 

Dan Watts, who was appointed as US Signal’s new CEO earlier this year, said the acquisition fits with the company’s growth strategy and made sense because of the company’s existing presence in the area. 

“The purchase fits perfectly within our five-year plan to build additional digital infrastructure across our footprint, and it will allow us to partner with more customers in a growing Indianapolis market,” Watts told Crain’s Grand Rapids. The company also owns a data center in South Bend, Ind.

The new Indianapolis data center will have 300 available cabinets along with around-the-clock staffing. As well, the facility will feature US Signal’s Cloud Pod for both private and multi-tenant cloud hosting services. 

Upgrades to ready the Indianapolis data center will be underway in three phases, according to Watts. The first phase involves immediate upgrades to bring production capability online, which the company expects to happen in mid-2024 

A second phase will expand the data center footprint to serve more customers with new fiber construction, and a third phase could involve expanding the center on adjacent property to accommodate future growth, if needed. 

Watts said the company also plans to grow the Indianapolis team as a result of the acquisition, though the company is still sizing the number of positions needed. The “substantial addition” will include data center technician roles as well as jobs in field operations and sales, he said. 

Looking ahead, Watts expects the industry outlook for data centers and connectivity in the U.S. to remain strong going into 2024, especially with the growing adoption of cloud-based services and artificial intelligence. 

Watts said he has seen strong demand for connectivity services in industries such as manufacturing, health care, technology and education, in particular. 

“The U.S. is one of the biggest cloud markets in the world, and it’s propelled by businesses seeking cost efficiency, continuity, and digital transformation. We think that that’s going to be further driven by the proliferation and adoption of AI,” Watts said. “We’re very excited about the continued growth (and) the continued opportunity that we’ll see across the Midwest and our footprint across the U.S.” 

Founded in Grand Rapids in 2001 by tech entrepreneur Rich Postma, US Signal was acquired in early 2023 by Australia-based fund manager Igneo. Postma exited the company with the sale, which at the time included US Signal’s 9,500-mile fiber network and eight data centers. US Signal as of early 2023 had operations in nine states in the Upper Midwest and employed 185 people.

2023 was “a year of transition” for Watts and the company as he assumed the top executive role, but the new Grand Rapids resident said he is excited about being in West Michigan. 

“Grand Rapids is an amazing city, and we’ve thoroughly enjoyed immersing ourselves in it and in the community,” Watts said. “One of the things that really has impressed me the most about this region is the strength of the talent pool. We’re very excited to continue to create opportunities in the region … to open doors and create career opportunities for people in the communities we serve.”

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