CyrusOne Inc, a U.S. data center operator, will be taken private for $11.49 billion in cash by KKR & Co Inc and Global Infrastructure Partners (GIP), the latest deal in a sector that has expanded during the COVID-19 pandemic.

The use of cloud-based services has expanded as a result of the coronavirus-driven shift to remote work, pushing up demand for data centers that help power the digital infrastructure.

According to the deal announced on Monday, KKR and GIP will pay $90.50 each CyrusOne share, marking a 5.9% premium over the company's previous closing price. CyrusOne's stock increased by 3.6%.

The Dallas-based corporation, which operates more than 50 data centers around the world, is valued at around $15 billion, including debt.

In a similar transaction, real estate investment trust American Tower agreed to pay $7.5 billion for CyrusOne's competitor CoreSite Realty Corp.KKR earnings surge 63% on strong capital market business | Reuters

In recent months, infrastructure and real estate investors have purchased data center assets to capitalize on the spike in demand.

Blackstone Funds agreed in June to take QTS Realty Trust private for $10 billion. will pay $10 billion for QTS Realty Trust in order to obtain access to the company's over 7 million square feet of data center space across North America and Europe.

CoreSite, a Denver-based data center operator with 24 locations around the United States, was up 2.1% in premarket trade.

Last week, a major Newswire reported that CoreSite was fielding purchase offers and that CyrusOne was working with investment bank Morgan Stanley to examine strategic options in September.