Data Center Investment News — 13/09/2024

by

Serverfarm acquires two data centers in Houston, Texas

Serverfarm has acquired two data centers in the Houston, Texas area, marking its entry into the Texas market. These sites span 250 acres and offer over 500MW of power capacity, both equipped with on-site substations with available capacity. The acquisition was funded through equity commitments from Manulife Investment Management and minority shareholders.

CEO Avner Papouchado stated, “Serverfarm’s innovative approach to providing near-term capacity directly addresses hyperscale customer requirements in a sustainable, future-proof manner. Our entry into Houston is our largest data center investment to date, demonstrating our continued focus on serving our customers’ needs.”

The HOU1 facility has 350,000 sq ft of current capacity with plans for 410MW of customer capacity, while the HOU2 campus spans almost half a million sq ft across two buildings, with 100MW available through existing grid power.

DXC Technology, formed in 2017, has been divesting its data centers, and both these sites align with its previous assets. Serverfarm now operates a total of 1.5 million sq ft of data center space across North America, Europe, and Israel, with 125MW of IT capacity.

STT GDC Indonesia breaks ground on second data centre facility

ST Telemedia Global Data Centres (STT GDC) Indonesia has begun construction on its second facility, STT Jakarta 2, located within the STT Jakarta Data Centre Campus in Bekasi, Jawa Barat. This is part of a four-data center expansion plan. The new facility is designed to provide up to 24 megawatts (MW) of IT power and will feature a dedicated 150kV substation.

Construction of STT Jakarta 2 is expected to be completed by 2026 and will contribute to STT GDC Indonesia’s goal of exceeding 90 MW of total IT load in the coming years. The expansion aligns with Indonesia’s Vision of Digital Indonesia 2045 and its National Strategy on Artificial Intelligence.

Hendrikus Hendra Gozali, Country Head, Indonesia, PT STT GDC Indonesia, said: “Indonesia is experiencing rapid digital growth, driven by the increasing adoption of cloud computing, AI, and big data. The data centre colocation market in Indonesia is projected to grow at a CAGR of 22% from 2023 to 2028, driven by rising demand for hyperscale and colocation data centres services.”

Lionel Yeo, Chief Executive Officer, Southeast Asia, STT GDC, said: “We are excited to contribute to the growth of Indonesia’s digital infrastructure with the development of STT Jakarta 2. The country’s digital transformation is well underway, and with STT Jakarta 2, we are not only meeting the increasing demand for data centre services but also setting a new standard for AI-ready infrastructure.”

DataBank announces 480MW campus in Dallas, Texas

DataBank, a US colocation firm, has announced plans to develop a 480MW data center campus in Dallas, Texas. The Red Oak campus, located on 292 acres in Ellis County, will house up to eight two-story facilities, each covering 425,000 sq ft (40,000 sqm).

The first phase will include four buildings and a 400MW substation from Oncor, providing up to 240MW of critical IT power. The campus will eventually expand to 480MW across all eight buildings, with construction for phase one expected to finish by Q2 2026.

In July, DCD reported that DataBank had filed to build a $256 million facility in the Red Oak area, as detailed in state documents. “We are excited to announce this significant investment in the Dallas area, which we consider one of the most attractive, long-term, and permanent data center markets in the US,” said Raul K. Martynek, CEO at DataBank.

This expansion follows a $725 million credit facility secured by DataBank in April 2023, as well as a $456 million green bond issued in February. The company has made two other major acquisitions in the past year, acquiring a 95-acre campus in Atlanta and an 85-acre campus in Northern Virginia. These acquisitions will add over 450 acres and 792MW of capacity to DataBank’s portfolio once fully developed.

Brookfield’s Data4 launches $330m Athens data centre campus, part of $8bn European expansion

Brookfield-backed Data4 has announced its first venture into Greece, investing over €300 million (US$331.5 million) to build a data center campus in Paiania, Athens Region. This is part of the company’s €7 billion (US$7.73 billion) European expansion plan, aimed at becoming one of Europe’s largest data center operators by 2030.

The group’s President and CEO, Olivier Micheli, said: “We are delighted to expand our footprint in Greece, a country that offers strategic advantages in terms of location, connectivity, and economic potential. This investment will not only support our growth ambitions but will also make a significant contribution to the local economy and digital ecosystem in Greece.”

Micheli further underscored the critical role of data centres in the digital landscape: “As data centres are the safebox of data management for companies and public administration, they support the development of cloud and AI services and are essential for the functioning of efficient and sustainable digital uses for the Greek citizens.”

The new campus, ATH1, will be located on a 7.5-hectare plot in Paiania’s industrial zone, with a power capacity of up to 90 MW. The project is expected to create over 7,000 permanent jobs across Data4’s European campuses by 2030, including 500 jobs in Greece.

Greece’s role as a strategic connectivity hub, bolstered by its geographical position and major submarine cables, makes the investment more significant. The Greek data center market, valued at approximately US$763.80 million in 2023, is projected to grow to around US$1.34 billion by 2029, with a compound annual growth rate (CAGR) of 9.91%.

EcoDataCenter buys 20 acres to build new 240MW data centre campus

Sweden’s EcoDataCenter has acquired a 20-acre site in Borlänge, Sweden, from a former papermill plant. The new campus will offer at least 240MW of power capacity, with the first data centers expected to be operational by 2027. This site is located near EcoDataCenter’s existing Falun campus, which has three operational data centers and a fourth under development.

CEO Peter Michelson recently told The Tech Capital he was exploring increasing capacity at the Falun campus up to 80MW, adding two additional buildings. “This location is perfect for us,” Michelson said of the Borlänge campus. “We can use the same partner ecosystem as we have established in the region as well as connect the two sites, giving clients the potential to build some of the world’s biggest compute clusters.”

Recently, EcoDataCenter partnered with Coreweave to bring Nvidia’s Blackwell GPU cluster to its Falun campus. “We are currently establishing a leading company designing AI infrastructure and data centres,” Michelson said. “Our services and expertise are highly sought after in the market. Borlänge is a very important asset for us to meet the market demand and continue to scale the company.”

Additionally, EcoDataCenter operates data centers in Stockholm and Pitea, and is planning a 150MW campus in Östersund, with the first 20MW phase set to go live in 2026 and the full project completed by 2033.

AWS commits $10.5 billion to UK data centres over four years

Amazon’s cloud computing arm, AWS (NASDAQ: AMZN), has announced plans to invest £8 billion ($10.46 billion) in UK data center infrastructure. This expansion will boost cloud and AI services, creating an estimated 14,000 jobs and contributing $14 billion to the UK economy.

“The next few years could be among the most pivotal for the UK’s digital and economic future, as organisations of all sizes across the country increasingly embrace technologies like cloud computing and AI to help them accelerate innovation, increase productivity, and compete on the global stage,” AWS’s president and EMEA managing director Tanuja Randery said.

AWS launched its EU West (London) cloud region in 2016 with three availability zones and has an edge location in Manchester. Since 2020, Amazon estimates it has invested £3 billion in AWS in the UK. In March 2022, AWS committed £1.8 billion ($2.4 billion) to expand its UK data center footprint.

UK Chancellor Rachel Reeves called the £8 billion investment a signal of Britain’s business potential: “This £8 billion investment marks the start of the economic revival and shows Britain is a place to do business. I am determined to go further so we can deliver on our mandate to create jobs, unlock investment and make every part of Britain better off. The hard work to fix the foundations of our economy has only just begun.”

The UK government is streamlining planning for data centers, even allowing development on green-belt land around London. Other tech giants are also investing in the UK: Google (NASDAQ: GOOG) is planning a $1 billion, 33-acre data center campus in Waltham Cross, and Microsoft (NASDAQ: MSFT) will spend £2.5 billion ($3.2 billion) on AI data centers across London, Wales, and Northern England.


EdgeCore completes $1.9 billion equity investment

EdgeCore Digital Infrastructure has secured nearly $2 billion in equity investment, announcing the completion of a $1.9 billion capital raise. The investment was “significantly oversubscribed” and backed by multiple global co-investors, with a major contribution from returning investor Partners Group.

“The financial requirements for building data centers designed to meet the density specifications of artificial intelligence are staggering and demand the right combination of industry expertise and investment,” said Lee Kestler, CEO, EdgeCore Digital Infrastructure.

“EdgeCore executed our 2023 forecast well ahead of plan and we are prepared to utilize this $1.9 billion investment to continue meeting the exploding demand for high-density data center space required by our hyperscale customers.”

EdgeCore, launched in 2018 and acquired by Partners Group in 2022, plans to use the funds to develop hyperscale data centers across its portfolio, which includes campuses in Ashburn and Culpeper, Virginia; Silicon Valley, California; Phoenix, Arizona; and Reno, Nevada. The initial $1.2 billion investment from Partners Group in 2022 has already been fully committed.

Microsoft breaks ground on data center in Quebec City, Canada

Microsoft has broken ground on a new data center in Quebec, Canada. “Microsoft began construction for the first phase of development of the L’Ancienne-Lorette data center in June, 2024,” the company recently announced. “The data center construction site is located in the City of L’Ancienne-Lorette, Quebec, Canada.”

While specific details of the data center were not disclosed, current work includes tree cutting, demolition, fencing, and site grading, with foundation work to follow. “We anticipate that construction will be completed by early 2026,” Microsoft added.

Microsoft already operates two Canadian Azure regions, including one in Quebec City, which has only one availability zone. In late 2022, the company announced a US$500 million investment to expand its cloud computing and AI infrastructure in Quebec, with additional facilities planned in L’Ancienne-Lorette, Donnacona, Saint-Augustin-de-Desmaures, and Lévis.

CyrusOne KEP breaks ground on Japanese data centre, plans $7bn investment

CyrusOne KEP, a joint venture between data center operator CyrusOne and Japanese utility Kansai Electric Power Co., Inc. (KEPCO), has begun construction on its first data center in Japan. This marks the start of a decade-long plan to roll out 900MW of capacity, supported by a $7 billion capital investment. The hyperscale facility, named CyrusOne KEP OSK1, will be located in the Kansai area’s Keihanna Availability Zone, a major data center hub.

The facility will occupy a 19,693 square meter (211,973 square foot) plot and offer 48MW of IT capacity across 11,562 square meters (124,452 square feet) of technical space. The development will occur in three phases, with the first 16MW scheduled to be operational by Q1 2028. It will feature a total incoming power of 70MVA distributed across six 8MW data halls on four floors.

Eric Schwartz, CEO of KKR/GIP-backed CyrusOne, said: “CyrusOne KEP combines CyrusOne’s deep experience in data centre design and operation with KEPCO’s immaculate track record for delivering power reliably and sustainably throughout Kansai over many decades, creating a unique partnership that simultaneously optimises digital and power infrastructure.”

Nozomu Mori, President of KEPCO, added: “We have exciting plans for our joint venture going forward, with an ambitious target of investing 1 trillion yen (US$7 billion) over the next decade to reach a business scale of 900 MW total incoming power.”

CyrusOne KEP expects the project to create significant employment opportunities during both construction and operations. The partnership’s broader goal is to scale to 900MW total incoming power, with 600MW of IT capacity, over the next decade.

A-FLOW Achieves Major Milestone with ML1 Data Center in the Philippines

Philippines data center operator A-FLOW has topped off its new ML1 Data Center in Biñan, Laguna. The joint venture between FLOW Digital Infrastructure and AyalaLand Logistics Holdings Corp. (ALLHC) began construction in December 2022. With the structural framework completed, the center is set to commence operations in Q4 2024 with an initial 6MW capacity

Amandine Wang, President of A-FLOW and CEO of FLOW, said: “The topping off of ML1 is a testament to the vision, commitment, and dedication of all our vendors, partners, and consultants who have contributed to this achievement.”

Robert S. Lao, Chairman of A-FLOW and President and CEO of ALLHC, added: “This project embodies our commitment to supporting the growing demand for data storage as the Philippines transitions to a digital economy.”

Also commenting, Manuel S. Mendoza, President and Chairman of Monocrete Construction Philippines, said: “Without the support of the A-FLOW team, this milestone could not have been possible. Congratulations to the shared success of the Monocrete and A-FLOW team!”

ST Telemedia Global Data Centres launches $3.2bn expansion in India

ST Telemedia Global Data Centres (STT GDC) is investing US$3.2 billion (INR 26,000 crores) to expand its data center capacity in India by over 550MW, nearly tripling its IT load capacity. This expansion addresses the growing demands driven by increased data consumption, cloud computing, digital transformation, and AI adoption.

STT GDC India, in partnership with Tata Communications Ltd, operates 28 data centers across 10 cities and holds about 28% of the market share in revenue generation, with a current total capacity of over 318MW, serving around 1,000 enterprise customers, including Fortune 500 companies.

Bruno Lopez, President and Group CEO of ST Telemedia Global Data Centres, said: “As we celebrate STT GDC’s 10th anniversary this year, embarking on this ambitious expansion is a sign of our confidence in Digital India and the future of one of STT GDC’s strategic and fastest growing markets globally. Prime Minister Modi’s vision for Digital India has paved the way for opportunity; today the India digital economy’s growth rate of almost three times overall GDP growth is putting the country on pace to achieve a US$1 trillion digital economy by 2027-2028.”

AWS to invest US$1.8 billion in Brazil

Amazon’s AWS plans to invest US$1.8 billion in Brazil’s data center market, extending through 2034. This follows AWS’s recent US$10.5 billion investment in the UK and Scala Data Centers’ large-scale project in Brazil. AWS has operated a cloud region in São Paulo since 2011 and has additional edge regions in Rio de Janeiro, São Paulo, Fortaleza, Bogotá, Buenos Aires, Santiago, and Lima.

From 2011 to 2023, AWS invested 19.2 billion reais (US$3.3 billion) in Brazil, contributing US$4.8 billion to the economy and creating around 10,000 jobs annually. The company aims to source 100% of its electricity from renewable sources by 2023, supporting this goal with projects like a 122-MW solar farm and a 49.5-MW wind farm.

“Brazil has a thriving technology sector, and this additional investment will provide businesses and public organisations across the country with valuable resources to support their innovation and growth,” said Shannon Kellogg, vice president of public policy, Americas at AWS.

“We are also committed to helping develop the next generation of cloud talent in Brazil through training initiatives and collaborations, and we look forward to these professionals driving innovation for decades to come in the country and across Latin America.”

AWS also focuses on water replenishment, committing to return over 7 billion liters of water annually to local communities and using AI for efficient irrigation. “Private investment is great news for Brazil. It is a sign of the industry’s confidence in our economy and a guarantee of sustainable growth, generating jobs and income. I congratulate Amazon Web Services for this initiative, which will help strengthen the technology sector in Brazil,” said its, Vice President and Minister of Development, Industry, Commerce and Services, Geraldo Alckmin.

“We have a long history of commitment to Brazil, and this new investment in cloud infrastructure and connectivity reinforces our belief in the country. Digital transformation is a reality and AWS has a fundamental role in providing companies and government organisations with the tools to accelerate innovation, generating high-value jobs,” said Cleber Morais, general manager of AWS in Brazil.

The investment will support Brazil’s tech sector and workforce development, including programs to upskill women, train 80,000 people in cloud fundamentals, and provide free cloud skills training.

DigitalBridge-backed Scala Data Centers touts $90bn mega ‘AI City’ campus in Southern Brazil

Rio Grande do Sul, Brazil, has signed a letter of intent with Scala Data Centers to develop Scala AI City, potentially South America’s largest digital infrastructure project. The first phase involves a US$500 million (approximately BRL 3 billion) investment, aiming to establish Brazil as a key player in the global AI sector. The project will be situated in Eldorado do Sul, near Porto Alegre, and could eventually expand to a 17-building campus

Governor Eduardo Leite said: “We are looking at an initial investment of US$500 million with the potential to reach US$90 billion when fully realised. We must be ambitious and bold with this project, not just dreaming, but actively working to make it a reality.” Scala AI City is expected to create over 3,000 jobs in its first phase and potentially up to 80,000 jobs over 20 years, including 20,000 construction workers.

Marcos Peigo, CEO and co-founder of DigitalBridge-sponsored (NYSE: DBRG) Scala Data Centers, said: “This project represents an initial investment of US$500 million and the construction of what could be the largest and most innovative digital infrastructure project on the continent. We are not only elevating Brazil to a new technological level but also driving the state’s economic and social recovery.”

The initial IT capacity will be 54 MW, with potential expansion to 4,750 MW across over 1,730 acres. The data centers are designed to achieve a Power Usage Effectiveness (PUE) of 1.2 and a Water Usage Effectiveness (WUE) of zero. Scala has secured a 700-hectare site and 5 GW of energy from Brazil’s 12 GW total capacity. Scala’s presence in the state began in 2023 with a 4.8 MW data center in Porto Alegre, involving a US$42 million investment.

Conapto’s new data centre increases its Stockholm capacity by 200%

Swedish data centre operator Conapto has launched its new facility, Stockholm 4 South, expanding its Stockholm South Campus. This addition increases Conapto’s total capacity from 11 MW to 31 MW. Stockholm 4 South provides 20 MW of compute power over 8,000 square meters, including one retail colocation room with 1 MW of power and additional white space for future deployments. It is powered entirely by renewable energy, with excess heat recycled to the local district heating network.

The new data centre, designed for both high-density and liquid-cooled deployments, complements Stockholm 2 South, a 4 MW facility also on the campus. Conapto CEO Håkan Björklundish said the data centre would attract Swedish and international companies seeking data centre capacity in Stockholm.

Conapto partnered with Coromatic, part of the E.ON group, on the design, construction and installation of the new facility. “The opening of Stockholm 4 South demonstrates Conapto’s commitment to ensuring that the increasing data usage driven by AI and digitalization aligns with sustainable development,” said Peter Neuberg, CEO and Group President of Coromatic.

Conapto’s portfolio includes Stockholm City 1, with 1 MW of colocation space, and Stockholm North 3, offering 6 MW of compute power, in addition to Stockholm South 2 and 4.

Kulczyk Investments’ Beyond.pl to build 150MW AI data centre campus

Polish data centre builder Beyond.pl plans to expand its colocation campus in Poznań, increasing its capacity from 86 MW to 150 MW to support AI, machine learning, and high-performance computing. The expansion will provide high power density IT infrastructure, with over 130 kW per rack.

Wojciech Stramski, CEO of Beyond.pl, stated: “Our readiness to launch investments in new colocation spaces on the Poznań campus is a response to the dynamically changing needs of the market, primarily the demand from companies focused on AI deployments.” The facility will employ advanced cooling technologies, including liquid cooling and immersion cooling, to optimise power and water consumption, the company said.

Piotr Kowalski, Head of Innovation, commented: “Our differentiator is flexibility in the choice of solutions, which simultaneously means technological freedom for customers.” Kulczyk Investments-owned Beyond.pl’s currently serves over 500 clients solely out of its Poznań campus.

PowerHouse acquires 120-acres in Charlotte, North Carolina, for 300MW campus

PowerHouse Data Centers, in partnership with real estate investment management firm Town Lane, has acquired 122 acres in Charlotte, North Carolina, for a new data center campus. The future PowerHouse Charlotte campus will consist of five buildings totaling 2.5 million square feet (232,255 sqm) and offer 300 MW of power, with the potential to expand to 500 MW by April 2027.

Tyler Henritze, founder & managing partner, Town Lane, said: “We recognize the ongoing demand for digital infrastructure and that Charlotte has emerged as a compelling data center market given its access to renewable power and connectivity, which is why we are excited to partner with an experienced developer like PowerHouse, who has strong proven technical and power procurement capabilities, to develop this site.”

The full scope of the campus wasn’t shared at the time, but it was said the project could see up to 2.5 million sq ft of data center space developed. The project, which received zoning approval from the Charlotte City Council in September 2023, will benefit from 15 MW of bridging power from an adjacent substation and will see the construction of an additional substation in partnership with Duke Energy.

Brian Katz, PowerHouse president and co-founder, added: “Our deep real estate relationships are foundational to PowerHouse’s success and instrumental in our ability to rewrite the data center development playbook. We have a tremendous amount of respect for Town Lane and are thrilled to collaborate on our first project together.”

Town Lane, founded in 2024 with $1.25 billion in institutional investor capital, is a New York-based real estate investment manager. Legal counsel for Town Lane is Simpson Thacher & Bartlett LLP, while Arnold & Porter Kaye Scholer LLP represents PowerHouse. Eastdil Secured, LLC advised on the land sale. PowerHouse recently formed a $5 billion joint venture with Chirisa and Blue Owl for data center development for AI cloud firm CoreWeave.