Data Center Investment News — 22/09/2023
North Atlantic’s Major Markets Building Nearly 3GW of Data Centre Supply
The North Atlantic region is witnessing a significant surge in data centre construction, with major markets collectively adding nearly 3 gigawatts (GW) of data centre supply. This surge in data centre development highlights the growing demand for the area’s digital infrastructure and cloud services.
Pat Lynch, executive managing director for CBRE’s Data Centres Solution, said: “Data centre construction is at an all-time high, driven by strong demand from all users, including AI, hyperscale and enterprise. “New and existing uses of artificial intelligence cases grew tremendously in the first half of the year, and we expect demand to remain strong with AI driving leasing opportunities in the second half of the year.”
Over in Europe, CBRE anticipates that there will be 4GW of installed capacity in FLAPD markets by the end of 2023, a 17% rise compared to the previous year.
Key markets such as Northern Virginia, London, and Frankfurt are actively expanding their data centre capacity to meet the needs of businesses and consumers in the digital age.
Principal Asset Management Invests in 42MW Amsterdam Data Centre
Principal Asset Management has made a substantial investment in a 42-megawatt (MW) data centre located in Amsterdam. This investment underscores the attractiveness of the Amsterdam data centre market for institutional investors seeking stable and long-term returns.
Paul Lewis, director of European data centres, Principal Asset Management, said: “We are pleased to be working with Switch Data Centres given the company’s strong track record of operating in the Amsterdam market.
“We were particularly impressed by the market-leading sustainability initiatives featured in the facility and the ways in which it will provide substantial benefit to the local community. Our investment in Amsterdam is a significant step forward as we create a high-quality pan-European portfolio of leased data centre assets.”
The data centre’s 42MW capacity aligns with the increasing demand for data processing and storage services in the region, supporting Amsterdam’s role as a major digital hub.
DTCP Becomes Majority Shareholder in Central European Data Centre Operator
DTCP (Deutsche Telekom Capital Partners) has acquired a majority stake in a central European data centre operator. This strategic move reflects DTCP’s confidence in the growth potential of the data centre market in central Europe.
Philipp von Bismarck, Managing Partner at DTCP, said: “We are pleased to continue backing maincubes, becoming majority shareholders, and partnering with an experienced management team that shares our vision for the future of the data centre market. DTCP’s resources and expertise will contribute to the foundations for success at maincubes, supporting maincubes to become a leading European data centre operator.”
By becoming the majority shareholder, DTCP aims to support the operator’s expansion efforts and contribute to the development of digital infrastructure in the region.
Saudi Calls on Chinese Partners to Build Data Centres Across the Kingdom
Saudi Arabia is seeking Chinese partners to collaborate on the construction of data centres across the kingdom. This initiative is part of Saudi Arabia’s efforts to develop its digital infrastructure and diversify its economy.
Ibrahim M. Al Sheikh, the Chairman of Saudi Call, said: “We are excited about collaborating and forming the alliance with LMT, CMI and ICS Arabia to announce the launching of 100MW Tier III & IV Data Centres. Saudi Call is looking forward to driving the progress of digital transformation and making a valuable contribution to Vision 2030.”
By inviting Chinese investment and expertise, Saudi Arabia aims to accelerate the establishment of data centres to support its digital transformation and economic diversification.
AWS to Invest $3.5 Billion in New Albany Data Centre Park
Amazon Web Services (AWS) is planning to invest a substantial $3.5 billion in a new data centre park in New Albany, Ohio.
Roger Wehner, AWS’s director of economic development, said: “We are proud to reinforce our long-term commitment to the state of Ohio with plans to invest an additional US$3.5 billion in New Albany by 2030. Since 2015, AWS has invested more than US$6.3 billion in Ohio while supporting thousands of local jobs.”
This significant investment underscores AWS’s commitment to expanding its data centre infrastructure to meet the growing demand for cloud services. This expansion is part of Amazon’s wider plan to invest US$7.8 billion in central Ohio data centres, announced earlier this year.
The data centre park will contribute to the region’s digital ecosystem and provide cloud services to businesses and consumers.
PE-Held Stack Infrastructure Opens Toronto Hyperscale Data Centre
Stack Infrastructure, a private equity-held company, has opened a hyperscale data centre in Toronto, Canada. This facility is designed to meet the high-performance computing needs of hyperscale cloud providers and enterprises.
Brian Cox, Chief Executive Officer of STACK Americas, said: “In a market that continues to see a high absorption rate for data centre capacity, STACK is proud to deliver the first phase of our Toronto campus.
“We look forward to deploying the next phase of this flagship campus to address our clients’ needs while vitalizing the local economy.”
Stack Infrastructure’s investment in Toronto strengthens the city’s position as a key data centre market in Canada and supports the digital growth of the region.
Sabey Data Centres Plans to Break Ground on $950M Data Centre in 2025
Sabey Data Centres is planning to break ground on a substantial $950 million data centre project soon. This investment reflects Sabey’s commitment to expanding its data centre portfolio and providing state-of-the-art facilities to meet the evolving needs of its clients.
Rob Rockwood, President of Sabey Data Centres, commented: “Sabey continues its commitment to build cutting-edge, super-efficient data centres in markets like Umatilla that move us toward our goal to operate with net-zero carbon emission by 2029. Our data centres combine that level of sustainability with low Total Cost of Ownership (TCO) throughout the data centre lifecycle, reliability, and connectivity.
“And as we have in every one of our markets, we will run our campuses with men and women from the local community who share our vision to build opportunity along with the world’s best data centres.
The project is expected to support the digital infrastructure requirements of businesses and organizations.
EdgeConneX Gets $403.8M Sustainability-Linked Financing for Indonesia Data Centre
EdgeConneX has secured $403.8 million in sustainability-linked financing for its data centre project in Indonesia. This funding underscores the importance of sustainability in data centre development.
Randy Brouckman, CEO, and co-founder of EdgeConneX, said: “We are extremely grateful to our customers who are driving the demand for the significant data centre capacity expansions necessary to support the digital economy of Indonesia. We are also grateful for our local partners’ support in Jakarta. We couldn’t execute our vision to become Indonesia’s premier data centre operator without their capabilities, local relationships, and market expertise that they bring.”
EdgeConneX’s commitment to environmentally responsible data centres aligns with the financing’s sustainability-linked criteria, demonstrating the industry’s focus on green data infrastructure.
Mexico’s Queretaro State Approves Trust for $4bn CloudHQ Data Centre
Mexico’s Queretaro state has approved a trust for a $4 billion data centre project by CloudHQ. This project highlights Mexico’s growing role as a data centre hub in Latin America.
CloudHQ is planning to develop a six-building hyperscale data centre complex at the site, with each data centre having an IT capacity of up to 48MW, for a total of 288MW across the campus. CloudHQ is also in the process of developing data centre campuses in Rio de Janeiro, Brazil, and another with 288MW of capacity in the Sao Paulo state, which broke ground in March 2023.
The trust approval will facilitate the financing and development of the data centre, supporting the region’s digital transformation and economic development.
PREA Receives Permit for 100MW Berlin Data Centre
PREA, a real estate investment firm, has received a permit to build a 100-megawatt (MW) data centre in Berlin. This project reflects the increasing importance of data centre assets in the real estate market.
“With the building permit in place and the grid connection contract concluded with Stromnetz Berlin, all barriers have now been overcome. It’s time to build the largest data centre in Berlin. Our customers can rely on timely completion and first-class technology,” said Gabriel Khodzitski, founder, and CEO of Prea.
The 100MW capacity is expected to address the growing demand for data centre services in Berlin and contribute to the city’s digital infrastructure.
Amazon Gets OK for Three New Data Centres in Dublin
Amazon has received approval for the construction of three new data centres in Dublin, Ireland.
Amazon sought permission to construct three data centre buildings on a 65-acre site: Data Centre E, Data Centre F, and Data Centre G, with a gross floor area of 1,425 sqm (15,350 sq. ft), 20,580 sqm (221,520 sq. ft), and 20,580 sqm respectively, each over two levels.
These data centres are part of Amazon’s ongoing investment in its cloud infrastructure to support the delivery of digital services. The expansion in Dublin reinforces the city’s status as a prominent European data centre hub.
QTS to Build Data Centre in York County, South Carolina
QTS Realty Trust is planning to build a data centre in York County, South Carolina. This project represents QTS’s continued expansion to meet the growing demand for data centre services in the United States.
“QTS is pleased to announce our expansion in York County, SC with a new campus that supports growth for QTS and its partners,” said QTS CEO Chad Williams. “Our investment in York County is consistent with QTS’ strategy of securing access to infrastructure at scale in strategic markets to support accelerating demand from our hyperscale, enterprise, and government customer base. We look forward to partnering with the community along with local and state leadership, further enhancing South Carolina as a leading technology centre.
The new data centre will contribute to the digital infrastructure of the region and provide businesses with reliable data processing and storage capabilities.
Microsoft Plans Data Centre Campus in Naas, Ireland
Microsoft is planning to establish a data centre campus in Naas, Ireland. This strategic move reflects Microsoft’s commitment to expanding its data centre presence in Europe.
Microsoft has commenced initial pre-planning consultation with relevant authorities which will help to inform the evolution of the design process. Details on campus size or capacity were not shared.
The campus will support Microsoft’s cloud services and contribute to Ireland’s digital economy, creating jobs and enhancing the region’s connectivity and digital capabilities.