Data Center Investment News — 30/08/2024
Aurum Equity Partners announces $400 million investment in 100MW Indian data centre
India’s Aurum Equity Partners announced a $400 million investment to establish a 100MW AI-powered, “green” data center in Hyderabad, Telangana. This follows an initial $50 million investment plan announced last year. The project, expected to create many jobs, was confirmed after meetings with Telangana’s Chief Minister Revanth Reddy and IT Minister Sridhar Babu.
Reddy said that the state of Telangana, of which Hyderabad is the capital, was happy that “Aurum has decided to build an AI-powered, green data centre, which will create many new jobs in Hyderabad.”
Aurum’s announcement comes shortly after Amazon’s AWS showed interest in increasing its investment in Hyderabad. Aurum, an investment banking firm founded in 2012, launched a $250 million private equity fund in May 2023 for investments in data centers and infrastructure across the US, MENA, and India. It made its first MENA investment in October 2023, partnering with the UAE’s Al Nowais Group to co-invest in a 50MW data center in Saudi Arabia.
“This initiative will make government services such as e-Seva, e-Payment, and e-Education accessible to all, supporting our mission to connect every corner of the nation,” said Venkat Bussa, CEO and chairman of Aurum Equity Partners.
Hyderabad is emerging as a data center hub, with recent major investments including CtrlS Data Centre’s plan to add 300MW of capacity, involving an investment of Rs 24,000-28,000 crore (~$2.9-$3.3 billion).
InfraVia’s Swiss operator Green breaks ground in Zurich data centre
Swiss data centre operator Green has started constructing its fourth facility at the Metro-Campus Zurich West, adding 5,526 square metres of data centre space with a 12-megawatt output capacity. This new facility will also feature a waste heat extraction system that will contribute to the heating of the surrounding region through the “Naturenergie Eigenamt” network, operated by IBB Energie AG.
Roger Süess, CEO of Green, stated, “We are witnessing the dawn of a new investment cycle. Our expansion programme aims to double our data centre capacities within the next two to three years.” The facility is expected to be operational by 2026.
As Green continues its expansion, reports suggest that Paris-based private equity firm InfraVia Capital Partners is considering selling the Swiss data centre operator’s portfolio, potentially valuing Green at around €1 billion (US$1.1 billion). Currently, Green operates data centres across four locations in Zurich, with a total capacity of 35 MW and an additional 90 MW under construction or planned.
Raxio launches new data centre in Democratic Republic of Congo
Raxio Group has launched a new data centre, Raxio DRC1, in Kinshasa, the capital of the Democratic Republic of Congo (DRC), following a $30 million investment. The facility, located in Limete on the southeast side of the city, spans 1,542 square metres, houses up to 400 racks, and delivers 1.5MW of IT power. This data centre is part of the DRC’s broader digitization efforts under the Plan National du Numérique, aimed at boosting digital inclusion and the private sector.
Raxio DRC1 is claimed to be the largest in the country, strategically located along key fibre routes to offer top-tier colocation and connectivity services. It comes shortly after WIOCC Group’s Open Access Data Centres (OADC) opened a 2MW data centre in Kinshasa with 1,500 square metres of IT white space, accommodating over 550 racks.
“DRC is one of Africa’s largest and fastest-growing markets with an existing latent demand for digital products and services that is forecast to soar in the coming years,” said Robert Mullins, CEO of Raxio Group.
Raxio’s expansion across Africa began with its first data centre in Uganda in 2021, followed by facilities in Ethiopia and Mozambique. Upcoming projects include data centres in Angola and Cote D’Ivoire set to open later this year, and TZ1 in Tanzania expected to go live in 2025.
In 2023, Raxio secured additional equity investment from Roha Group and Meridiam, and a debt facility of up to $170 million from Proparco and the Emerging Africa Infrastructure Fund (EAIF) to fund its expansion.
Tract announces 1.8GW data center park in Phoenix, Arizona
Tract has announced the development of a gigawatt-scale data center park in Phoenix, Arizona, after acquiring a 2,069-acre land parcel in Buckeye, Maricopa County. The park could accommodate up to 20 million square feet of data center space across 40 individual facilities at full build-out, with plans to support up to 1.8GW of capacity in collaboration with the local utility.
Buckeye Mayor Eric Orsborn praised the project, stating, “Through our collaboration with Tract, we’ve positioned Buckeye to host one of the largest data center technology parks in the country, driving substantial revenue and ensuring a thriving, sustainable future.” He added, “Projects of this size require a well thought out, executable plan, especially when analyzing the infrastructure needs of communities, and we are pleased that this project reduces water demand, preserves natural spaces, and creates hundreds of high-paying jobs.”
Tract acquired the land for over $136 million from Arizona Land Consulting, which had purchased it for $40 million in 2022. The site was previously planned for a community with nearly 10,000 homes, but the project never began.
“We have conviction that the Greater Phoenix market will continue to play a critical role in hyperscale data center networks,” said Grant van Rooyen, CEO of Tract. “We especially appreciate the engagement and partnership from Mayor Orsborn, City Council and Staff through this process.”
Tract, which emerged in 2022, focuses on developing master-planned data center parks and had identified 40,000 acres for potential investment. The company previously launched a 2GW, 2,200-acre project in Reno, Nevada, and has since expanded its holdings there to over 11,000 acres. It has also announced plans for a 668-acre campus in Eagle Mountain, Utah, and a large site outside Richmond, Virginia.
Tract now owns or is under contract for more than 23,000 acres across the U.S., with various stages of rezoning, design, or construction underway.
Indonesian – South Korean JV to build hyperscale DC in Jakarta
Sinar Mas, one of Indonesia’s largest conglomerates with interests in financial services, real estate, energy, and telecommunications, has formed a joint venture with Korea Investment Real Asset Management Co., a subsidiary of Korea Investment Holdings Co., to build a hyperscale data center in Jakarta, Indonesia. The project, valued at 400 billion won (US$300 million), will have an 18 MW capacity and occupy an 8,516-square-meter plot in Menteng Atas, Setiabudi, Jakarta. The facility will have a total floor area of 44,195 square meters, spread across 11 above-ground floors and one basement, with completion expected in 2027.
Each partner will invest 70 billion won (US$53 million) into the 50:50 joint venture, named Kuningan Mas Gemilang (KMG). Korea Investment Real Asset is seeking external investors to fulfill its financial commitment and plans to raise 260 billion won in project financing by the third quarter of next year, pending construction approval.
Additionally, Korea Investment is in discussions with Sinar Mas to potentially build and operate more data centers in Indonesia. Earlier, in March, Sinar Mas partnered with LG CNS Co., a Korean data center operator, to manage data centers for corporate clients and provide cloud storage services.
According to Arizton Intelligence, “The Indonesia data center market will witness investments of US$ 3.63 billion by 2029, growing at a CAGR of 5.91 percent during the forecast period.” The growth will be driven by the rise of digital technologies such as artificial intelligence (AI) and big data, improved inland and submarine cable connectivity, uptake in cloud services, demand for strong data storage and processing capabilities.
T5 announces 300MW data center campus in Atlanta, Georgia
T5 Data Centers has acquired a 91-acre site in Palmetto, South Fulton County, Georgia, to develop a new data center campus named ATL IV. The site is already zoned for data center use and could support up to 300MW of power capacity, with an on-site electrical substation expected to be operational by 2026.
“Our expansion in the Atlanta market underscores our commitment to providing infrastructure that meets the evolving needs of our clients. We are not just building a data center campus; we are creating a future-ready environment where hyperscalers and large enterprises can thrive,” said Pete Marin, CEO of T5. He added, “By providing liquid cooling to the rack, T5 is setting a new standard for energy efficiency and sustainability in data center construction and operations.”
T5 had previously filed plans for the ATL IV campus with the Georgia Department of Community Affairs, aiming to develop 2.95 million square feet of data centers across seven buildings by 2030.
David Horowitz, SVP and head of leasing for T5, added: “The Atlanta region has been a key market for T5 since our inception 17 years ago. Our relationships with key stakeholders in Atlanta and our expertise in this market allows us to strategically locate sites that will support our customers’ unprecedented growth in a time frame superior to our competition. This is only the beginning of our growth in Atlanta.”
Earlier in the year, T5 withdrew plans for another data center campus in Fairburn, Fulton County. T5 currently operates the T5@Atlanta site in Lithia Springs and is part of a major data center hub in Atlanta, alongside operators like Microsoft, CoreSite, QTS, and others.
STT GDC Philippines Opens Upgraded Data Center in Makati
STT GDC Philippines has officially opened its newly upgraded data center facility in Makati, enhancing its capacity to support the growing digital infrastructure needs in the region. The upgraded facility is designed to meet the increasing demand for high-performance data center services in the Philippines, driven by the rapid digital transformation across various industries.
The Makati data center is part of STT GDC’s ongoing efforts to expand its presence in Southeast Asia, providing reliable and scalable solutions for businesses in the region. The facility boasts advanced infrastructure, including robust security measures, energy-efficient cooling systems, and enhanced connectivity options.
This upgrade is a key milestone in STT GDC’s strategy to solidify its position as a leading data center provider in the Philippines, catering to the needs of cloud service providers, enterprises, and telecommunications companies. The new features of the Makati data center align with the company’s commitment to sustainability and innovation, ensuring that it can support the evolving demands of its clients in the digital age.
Cipher Mining Acquires 300MW Site in West Texas, US
Cipher Mining, a leading Bitcoin mining company, has acquired a 300MW site in West Texas, USA, marking a significant expansion in its operations. This acquisition is part of Cipher’s strategy to enhance its mining capacity, leveraging the region’s abundant renewable energy resources.
West Texas is known for its favorable conditions for large-scale Bitcoin mining, including access to cheap, renewable energy, which is critical for the energy-intensive process of cryptocurrency mining. The new site will bolster Cipher Mining’s capabilities, potentially making it one of the largest Bitcoin mining operations in the United States. The expansion is aligned with Cipher’s commitment to sustainable practices by utilizing renewable energy sources to power its mining activities.
This move also positions Cipher to capitalize on the growing global demand for cryptocurrency and the increasing institutional interest in Bitcoin as an asset class. The development reflects the broader trend of cryptocurrency mining companies seeking to scale up operations while focusing on sustainability.
Is Google Eyeing Vietnam for its Next Mega Data Centre Venture?
Speculation is mounting that Google may be considering Vietnam for its next major data center project. The tech giant is reportedly exploring Southeast Asia as a strategic location for expanding its data center footprint to meet the growing demands of the region’s digital economy.
Vietnam, with its rapidly developing economy and increasing internet penetration, is seen as a prime candidate. The country offers several advantages, including a young, tech-savvy population and a favorable investment climate. If realized, this project would significantly boost Vietnam’s digital infrastructure, providing a backbone for services such as cloud computing and artificial intelligence (AI). A Google data center in Vietnam would also signal the company’s commitment to expanding in Asia, where it faces stiff competition from other tech giants.
This potential investment aligns with Google’s broader strategy of building a robust, globally distributed network of data centers to enhance its service delivery and reduce latency for users in emerging markets.
Google Cloud Invests $850M in Uruguay Data Centre to Boost Latin American Connectivity
Google Cloud has announced an $850 million investment in a new data center in Uruguay, aimed at enhancing connectivity and cloud services across Latin America. This strategic move will significantly expand Google’s infrastructure in the region, supporting the growing demand for cloud services among businesses and governments.
The data center will serve as a critical hub for Google’s cloud operations in Latin America, improving service reliability and reducing latency for users. Uruguay was chosen for its political stability, skilled workforce, and favorable regulatory environment. The investment is part of Google’s broader commitment to investing in global infrastructure to support its cloud business, which is experiencing rapid growth as more organizations migrate to the cloud.
The new facility will also contribute to the development of the digital economy in Latin America, providing local businesses with enhanced access to advanced cloud computing services. This project underscores Google’s strategy to strengthen its presence in emerging markets and solidify its position as a leader in cloud services worldwide.
EcoDataCenter Plans to Expand Falun Campus Up to 80MW, On Lookout for New Locations in Sweden
EcoDataCenter, a leading provider of sustainable data centers, has unveiled plans to expand its Falun campus in Sweden up to 80MW. This expansion is part of the company’s broader strategy to meet the increasing demand for green data center services across Europe.
EcoDataCenter’s Falun campus is renowned for its focus on sustainability, utilizing renewable energy sources and innovative cooling techniques to minimize its carbon footprint. The expansion will significantly increase the campus’s capacity, allowing EcoDataCenter to cater to the growing needs of its clients in the Nordic region and beyond. In addition to expanding its Falun campus, EcoDataCenter is also actively exploring new locations across Sweden to further its growth.
This move is driven by the rising demand for data center services that align with environmental sustainability goals, as more companies seek to reduce their carbon emissions. EcoDataCenter’s commitment to green technology positions it as a key player in the evolving data center industry, where sustainability is becoming increasingly critical.
New $5Bn Joint Venture Targets AI and HPC Data Centre Expansion Across the US
A new joint venture has been announced, with plans to invest $5 billion in expanding AI (Artificial Intelligence) and HPC (High-Performance Computing) data centers across the United States. The venture, backed by leading industry players, aims to develop state-of-the-art facilities that will support the growing demand for AI and HPC infrastructure.
These data centers will be critical in powering advanced technologies such as machine learning, big data analytics, and complex simulations, which require significant computing power and specialized infrastructure. The initiative reflects the increasing importance of AI and HPC in various industries, including finance, healthcare, and scientific research. By investing in these high-capacity data centers, the joint venture aims to position itself at the forefront of technological innovation, providing the necessary infrastructure to support the next wave of digital transformation.
The move also highlights the growing trend of collaborations between industry leaders to pool resources and expertise in addressing the challenges and opportunities presented by AI and HPC technologies.
AREP’s PowerHouse Data Centers Bolsters Leadership Team with Triple Executive Appointment
AREP’s PowerHouse Data Centers has strengthened its leadership team with the appointment of three new executives, signaling the company’s commitment to accelerating its growth and expansion in the data center industry. The new appointments include industry veterans with extensive experience in data center development, operations, and management.
These strategic hires are expected to enhance PowerHouse’s capabilities in delivering state-of-the-art data center solutions to its clients, particularly in the rapidly growing markets for cloud services and digital infrastructure. The bolstered leadership team will focus on driving the company’s ambitious expansion plans, which include developing new data center campuses across key locations. PowerHouse Data Centers, known for its innovative approach to data center design and construction, is positioning itself as a leading player in the industry, with a strong emphasis on sustainability and efficiency.
The executive appointments reflect the company’s commitment to building a robust leadership team that can navigate the complexities of the data center market and capitalize on emerging opportunities.
KEVLINX, a company dedicated to building sustainable and AI-ready data centers across Europe, has announced the appointment of Warren Barrie as its new Senior Vice President (SVP) of Sales. Warren Barrie, a seasoned leader in the international data center industry, brings over two decades of experience and a robust network of relationships to his new role. Known for his enthusiasm, commercial acumen, and ability to lead high-performing teams, Warren is poised to play a pivotal role in driving KEVLINX’s commercial strategy across Europe.
Before joining KEVLINX, Warren served as Sales Director at Bulk Data Centers, where he was instrumental in shaping the Nordic data center market. He has also held senior sales positions at Global Switch, Digital Realty, and Virtus Data Centres, where he gained deep insights into the European market. Warren’s extensive experience and strategic vision will be crucial as KEVLINX continues to expand its presence in Europe’s rapidly evolving digital hubs, enhancing customer relationships on a global scale.