Data Center Investment News — 05/08/2022
PAG joins list of suitors vying to acquire Global Switch
The list of potential suitors looking to acquire Global Switch continues to grow, with PAG reportedly interested in the data center firm.
Founded in 1998, London-based Global Switch operates 13 facilities across Europe, Australia, and Asia. Chinese steel giant Jiangsu Shagang Group took control of the data center company over a three-year period beginning in 2016.
Reuters said this week that Shagang has kicked off a formal sale process earlier this month with non-binding bids due in the next couple weeks.
Global Switch has been flirting with a sale for over a year, talking to potential acquirers back in January 2021 for an $11 billion sale. By November, Blackstone, KKR, Brookfield Asset Management, DigitalBridge Group, Digital Realty, and Equinix had lined up as potential acquirers.
Stonepeak’s $2.7bn LATAM digital infrastructure takeover completes as Lumen exits Cirion
Lumen Technologies (NYSE: LUMN) has officially closed the sale of its Latin American operations to alternative investment firm Stonepeak for US$2.7 billion cash. The Latin American business, called Cirion, will operate as an independent portfolio company of Stonepeak.
As a result of the transaction closing, Stonepeak has named Lumen’s LATAM Regional President, Facundo Castro, as the new CEO of Cirion and is retaining the current executive team and existing 2,000 employees.
Jeff Storey, Lumen President and CEO, said: “This divestiture is an important step in achieving Lumen’s strategic goals as we sharpen our focus on key strategic assets while also providing our LATAM employees and customers an opportunity for continued growth.
“This transaction also positions our Lumen Platform for long-term growth, allowing Lumen to invest in a strategic mix of assets and alliances that allows us to deliver what our customers want anywhere in the world.”
Empyrion DC to Develop 40MW Data Center in Gangnam, Seoul
For the first time in over a decade, a shovel-ready project is poised to commence in Gangnam, Seoul, South Korea (“GDC”). Empyrion DC, Asia’s first green data center developer, announced plans on Tuesday to establish a 40MW data center in the district acknowledged as Seoul’s “Silicon Valley”.
Legal binding terms for full development rights between the Singapore-headquartered company and a local promoter have been agreed, with a proposed investment of up to US$400 million in the GDC, the company said.
Closing is expected to materialise prior to the end of September 2022, subject to the satisfaction of customary closing conditions. Empyrion DC is a portfolio company fully owned by funds managed by Seraya Partners.
With the GDC being home to several of Korea’s largest conglomerates such as Hyundai, LG and Samsung, Empyrion DC’s project will alleviate the data center shortage in the district and the broader metropolitan Seoul area.
Brookfield’s DCI Data Centers announces Canberra investment
DCI Data Centers (DCI) has secured land and power to build a 20MW edge data centre to service the Canberra market.
DCI Data Centers Chair and Brookfield Managing Director Udhay Mathialagan said the facility, to be built on a 4 hectares piece of land situated in the Poplars Innovation Precinct (Precinct), Jerrabomberra is the first to respond to the Commonwealth’s mandate to supply geographical and supply chain diversity for Government and public cloud workloads at scale.
“This new data centre is the first site to offer true resiliency in power provision that not only answers a call from the government to support their Cloud First Strategy, but will provide unparalleled security for our customers. It will also be one of the major contributors in driving urban development within the new Precinct,” he said.
CBR01, as the facility will be known, will operate on a separate grid to Canberra. This is due to a multi-party agreement and investment between DCI, Poplars and other power users, that will see Essential Energy build a new 132kV powerline to Poplars.
Macquarie buys position in ST Telemedia’s VIRTUS Data Centres
Global asset manager Macquarie Asset Management, via Macquarie European Infrastructure Fund 7, is to acquire a minority stake in UK-based data centre provider VIRTUS Data Centres (VIRTUS).
The stock purchase will be done with ST Telemedia Global Data Centres (ST Telemedia), VIRTUS flagship shareholder, and comes after months of market rumours that an acquisition was imminent.
Financial details were not made available. VIRTUS provides colocation and cloud connectivity services to blue-chip clients, including global technology companies and enterprise clients. Its portfolio comprises 11 data centre facilities in Greater London with a combined capacity of over 180 MW and more than 77,000 sqm of data centre space.
The company also has an initial 100 MW pipeline of projects under consideration in locations across the UK and Europe. The data centre provider is also targeting net zero emissions across its data centre operations by 2030.
NTT building sixth data center in Cyberjaya, Malaysia
NTT is planning a sixth data center in Cyberjaya, Malaysia. In a Facebook post, Malaysian Transport Minister Datuk Seri Wee Ka Siong said he recently met Yoshio Sato, the VP and director of network services for NTT.
“Today, Sato gave me an update on NTT’s sixth data center which is currently being built in Cyberjaya, to accommodate its expanding business in the region,” said Siong. “It’s also very encouraging to note that the planning of NTT’s Intra-Asia Express Cable connecting Japan, the Philippines, Sarawak, and Peninsula Malaysia is progressing well.”
NTT hasn’t made a public announcement about the facility or revealed any information about specifications. However, an investor presentation from the company suggests the facility is due live sometime in 2022.
365 Data Centers to acquire the majority of Sungard US
365 Data Centers is to acquire a majority of Sungard’s US colocation and networking business.
This year saw Sungard’s UK, US, and Canadian operations file for bankruptcy. Most of the UK operation has been sold off to UK telco Daisy Group and MSP Redcentric.
This week Sungard Availability Services (Sungard AS) announced that, subject to court approval, it has entered into an Asset Purchase Agreement with 365 DC. Update: Bloomberg reports 365 has bid $52.5 million for the business.
The deal is subject to court approval and customary closing conditions, with the court hearing to approve the agreement scheduled for August 24, 2022. Sungard expects the transaction to close this fall. Sungard operates 18 data centers and/or workplace recovery centers across the US totaling more than 3 million sq ft (278,700 sqm).