The Future of Data Centre Investment

The Future of Data Centre Investment
This new report considers the reasons for Private Equity investment in Data Centres.

Investment from private equity is nothing new, some just over 20 years ago (September 2020) private equity firms Baker Capital and Irving Place Capital invested in Interxion Holding. Though Private Equity (PE) & Sovereign Wealth Investors (SWI) are providing new impetus to hyperscale Data Centre investments worldwide and are key players in the introduction of new facilities and the acquisition of existing Data Centres.

The Future of Data Centre Investment report reveals that Private Equity providers are investing in Data Centres and are now doing so on an even large scale with investment running into billions of USD. Additionally, there are more investors and Private Equity investors account for a large share of new Data Centre developments in a number of markets, the report finds.

The report provides profiles insight into eighteen (18) private equity funds investing in Data Centres from Actis Captial to Princeten Digital Group. Furthermore, the report features a forecast for Private Equity Data Centre investment – from the end of 2021 to the end of 2025.

DC companies are now looking for incremental expansion, and it is the Private Equity companies who are now making the large investments in new hyperscale facilities rather than the established DCs, particularly in new or under-served DC markets.

They appear to see DCs as being attractive due to:

Content & Cloud demand in new markets – such as Indonesia, Poland, Japan

Hyperscale demand seen as a growth opportunityLow churn of DC tenants seen as being attractive