Data Center Investment News — 06/09/2024
Blackstone Buys AirTrunk in Monumental $16bn Deal, the Largest Ever in Data Centres
In a groundbreaking deal, Blackstone has acquired AirTrunk, the Asia-Pacific hyperscale data centre operator, for $16 billion. This is the largest acquisition in the data centre sector to date. AirTrunk’s network of hyperscale facilities, spread across Australia, Japan, and Southeast Asia, has established it as a leader in the industry. Blackstone’s investment signifies its belief in the growing demand for cloud-based services, AI, and data storage, and it will help accelerate AirTrunk’s growth and expansion in key markets.
Blackstone’s president and chief operating officer Jonathan Gray, and senior managing directors Greg Blank and Peng Wei Tan were in charge of the New York’s alternative investment management bid.
“AirTrunk is another vital step as Blackstone seeks to be the leading digital infrastructure investor in the world across the ecosystem, including data centers, power, and related services,” Gray said.
Empyrion Digital Enters Japanese Market with Hyperscale Data Centre Investment
Empyrion Digital has made its foray into the Japanese market with an investment in a new hyperscale data centre. This venture is part of the company’s strategic expansion into Asia, aiming to capitalize on Japan’s booming data and AI-driven economy. The hyperscale facility will offer state-of-the-art data infrastructure, catering to the increasing demand for high-capacity digital services in the region. Empyrion’s entry into Japan marks a significant step in its ambition to become a key player in the global data centre market.
Mark Fong, CEO of Empyrion Digital said: “Entering the Japan market is a significant milestone for Empyrion Digital. Japan is a key market for digital innovation in Asia, and we are excited to contribute to its growth with JP1 in Tokyo. Our expansion into Japan signifies our commitment to providing world-class, future ready digital infrastructure that meets the diverse needs of our hyperscale and enterprise customers while continually improving sustainability and innovation.”
James Chern, Managing Partner and CIO of sponsor Seraya Partners said: “As the fourth largest economy in the world, Japan continues to be an important destination for infrastructure investments. Seraya is excited to support Empyrion in securing trophy assets like JP1 Tokyo, demonstrating our team’s abilities in originating and developing these highly differentiated projects.”
Blackstone’s QTS to Build 1.1GW Mega-Campus on Former Britishvolt Site
QTS Realty Trust, a subsidiary of Blackstone, is set to construct a massive 1.1GW data centre campus on the former Britishvolt site in the UK. The site will be transformed into one of the largest data centres in Europe, catering to the growing demand for cloud services, AI processing, and data storage. This project underscores Blackstone’s commitment to expanding its data centre footprint and aligns with the UK’s digital infrastructure goals.
During the sale process to Blackstone, council leader Glen Sanderson said the project would represent a significant inward investment of up to £10 billion, “putting our County at the forefront of developments in the digital economy, and delivering over 1,600 direct jobs, including 1,200 long-term construction jobs, and over 2,700 indirect jobs over the course of the development.”
Penta Infra & atNorth Announce Combined 270MW Investment in Danish Data Centres
European infrastructure investment firm Penta Infra and Nordic data centre operator atNorth have announced a combined investment of 270MW in Danish data centres. This collaboration aims to develop state-of-the-art facilities that support sustainable and efficient data storage and processing, with a focus on renewable energy sources. The project aligns with Denmark’s growing digital infrastructure needs and reinforces the country’s position as a hub for green energy data centres.
“Our DEN02 site is truly a blueprint for future data centres,” said atNorth’s CEO, Eyjolfur Magnus Kristinsson. “The highly energy efficient design, including its state-of-the-art heat reuse technologies, coupled with the advantageous location in Denmark and our dedication to sustainability, exemplifies innovation in our industry. It will be an ideal location for hyperscalers and AI businesses looking to decarbonise their high-performance workloads.”
Penta Infra CEO Bob Sprengersalso cited Copenhagen’s strong connectivity as a reason for its choice to build in Denmark’s capital.
“Leveraging the city’s digital infrastructure and sustainability initiatives, we’re poised to meet the increasing demands of our global clientele for reliable, high-speed data solutions,” he said.
“The development of our second data centre in Copenhagen celebrates another remarkable milestone achieved by our portfolio company, Penta Infra,” said Igor Josephus Jitta, a partner at Photon Capital
Partners Group Invests $1.9 Billion in Portfolio Company EdgeCore Digital Infrastructure
Partners Group has invested $1.9 billion in EdgeCore Digital Infrastructure to support its expansion across North America. The investment will be used to develop new data centres, as well as enhance EdgeCore’s existing infrastructure, which caters to hyperscale cloud providers. This funding underscores the growing demand for data centre capacity in North America, fueled by increasing cloud adoption and the rise of digital services.
“This investment in EdgeCore is further evidence of our strong thematic conviction in the sector and the company’s growth prospects,” said Ed Diffendal, managing director and co-head of infrastructure, Americas at Partners Group.
“Led by Lee Kestler and a fantastic management team, we think EdgeCore is well positioned to capitalise on the accelerating demand for data processing and compute storage, which is being driven by the widening adoption of generative AI, cloud computing, and 5G technologies,” he added.
“The market’s growth makes institutional partnerships that bring scaled equity capital and debt procurement to the sector more important than ever. Partners Group’s substantial equity commitment, coupled with a widely syndicated co-investment from their institutional and high-net-worth clients, will facilitate our platform’s further growth,” Kestler, EdgeCore’s CEO said.
PE-Backed Soluna Holdings Expands Texas Data Centre to 100MW
Soluna Holdings, a data centre company backed by private equity, is expanding its facility in Texas to 100MW. This expansion will enable Soluna to meet the growing demand for cryptocurrency mining and high-performance computing. The Texas data centre leverages the state’s abundant renewable energy resources, aligning with Soluna’s commitment to sustainable and energy-efficient operations.
John Belizaire, CEO of Soluna Holdings, said: “We are thrilled to break ground on Project Dorothy 2, a project that builds on the success of Project Dorothy 1 and embodies our commitment to innovation, sustainability, and the future of digital infrastructure.
“This facility represents a new era of Renewable Computing where technology and sustainability can thrive together. We are excited to see this vision come to life.”
Meta Plans $800M Data Center Campus in Aiken County, South Carolina
Meta (formerly Facebook) is planning to build an $800 million data centre campus in Aiken County, South Carolina. The facility will support Meta’s global operations by providing crucial infrastructure for its AI, cloud computing, and digital services. The data centre will also focus on energy efficiency and sustainability, with Meta committing to using renewable energy for the site. This development reflects Meta’s continued investment in building its global digital infrastructure.
“We are excited to announce that Aiken County, South Carolina, will be home to Meta’s newest data center – our 22nd data center in the US and 26th in the world,” the company announced on Facebook this week. “This 715,000 sq ft (66,425 sqm) campus will be part of our global infrastructure that helps bring our technologies and services to life.”
“Meta’s decision to locate its newest operation in Aiken County is a major win for South Carolina’s thriving technology industry,” said Governor McMaster.
“Meta’s $800m investment will significantly impact our economy, creating valuable jobs and further driving innovation.”
GI Partners Secures Planning Permission for 72MW Data Center in Santa Clara, California
GI Partners has secured planning permission to build a 72MW data centre in Santa Clara, California. This development is part of GI Partners’ ongoing efforts to expand its data centre portfolio in one of the most important tech hubs in the United States. The Santa Clara facility will cater to hyperscale cloud providers and enterprises, offering high-performance data storage and processing capabilities.
Mayor Lisa Gillmor said this was an “easy” approval since the data center is a good business for Santa Clara and she likes the look of the “aesthetics.”
“What I was concerned about when this didn’t pass the planning commission, wasn’t really turned down, but it wasn’t passed either was there was a quite a big brouhaha that the community was very upset with data centers,” said Gillmor. “I have to say, I’ve been in public office for quite a while and I didn’t feel it, I didn’t hear it and I didn’t see the community opposition. I know there was some people, or there was people, creating things that didn’t really exist.”
Spain’s Solaria to Build 200MW Data Center in Puertollano
Spanish energy company Solaria plans to build a 200MW data centre in Puertollano, Spain. The facility will leverage renewable energy to power its operations, in line with Solaria’s focus on sustainability. This project marks Solaria’s entry into the data centre industry and aligns with the growing trend of energy companies diversifying into digital infrastructure.
The plant is equipped with clean rooms – highly insulated spaces used in the past to manufacture photovoltaic cells – that would be adapted to house the technological components of the data center, Bloomberg said.
Reliance Industries to Build GW-Scale AI Data Center in Gujarat, India
Reliance Industries has announced plans to build a gigawatt-scale AI data centre in Gujarat, India. This ambitious project will cater to the growing demand for AI and high-performance computing solutions in the country. The data centre will be powered by renewable energy, reflecting Reliance’s commitment to sustainability and supporting India’s digital transformation.
Mukesh Ambani, Chairman and Managing Director Reliance Jio said of the project: “We plan to establish gigawatt-scale AI-ready data centers in Jamnagar, powered entirely by Reliance’s green energy, reflecting our commitment to sustainability and a greener future.
“By leveraging our expertise in infrastructure, networking, operations, software, and data and by collaborating with our global partners, our goal is to create the world’s lowest AI inferencing cost, right here in India. This will make AI applications in India more affordable than anywhere else, making AI accessible to all.”
Wyoming Hyperscale Becomes Prometheus Hyperscale, Reveals Pipeline of Four Additional Sites
Wyoming Hyperscale has rebranded as Prometheus Hyperscale and announced plans for four additional data centre sites. The company is expanding its presence in the hyperscale market, aiming to provide high-capacity, energy-efficient data storage solutions. The new sites will focus on leveraging renewable energy to power operations, in line with the industry’s growing emphasis on sustainability.
The new company will be led by Trenton Thornock, the founder and CEO of Wyoming Hyperscale Whitebox, with Trevor Neilson, an experienced climate tech executive and investor, joining as president.
“Prometheus Hyperscale is redefining data center infrastructure,” said Thornock. “Our innovative approach, which combines cutting-edge technology with a commitment to sustainability, positions us at the forefront of the industry. I am excited to work alongside Trevor Neilson, whose leadership and vision will be instrumental as we scale our operations globally.”