Data Center Investment News — 13/12/2024
Prologis Divests Chicago Data Center to HMC Capital
Prologis has divested its data center property in Chicago to HMC Capital. While the financial details remain undisclosed, this sale marks HMC Capital’s continued interest in expanding its digital infrastructure portfolio.
Announced this week, the industrial real estate giant said the warehouse is held in the US Logistics Fund, a Prologis co-investment vehicle focused on premier logistics real estate, including higher and better-use conversions.
Skybox said the facility was located in the Elk Grove Village area of the city. Images shared by Skybox and Prologis suggest it was Chicago 1, the data center the two companies completed in early 2022.
Prologis, traditionally focused on logistics real estate, demonstrates a strategic move in optimizing its assets. The Chicago facility is well-positioned to cater to growing regional demands for data center services, aligning with HMC Capital’s expansion objectives.
Vitro Announces 100MW Data Center Development in the Philippines
Vitro, a data center operator under PLDT, has announced plans to develop a 100MW hyperscale data center in the Philippines. This project is expected to meet the growing demands of cloud service providers and enterprises in Southeast Asia.
Vitro has also activated Sta. Rosa’s network infrastructure, with the data center now offering interconnection with other Vitro sites nationwide.
In addition, PLDT has announced it will host a GPUaaS at the Vitro Sta. Rosa, in partnership with Vitro. GPUaaS will provide Vitro’s customers immediate access to AI and HPC technology, which can perform complex and high-computing tasks such as generative AI and large language model use cases.
The facility will emphasize sustainability with energy-efficient designs and renewable energy sources. The expansion is part of Vitro’s strategy to strengthen the Philippines’ position as a regional data center hub.
New data center firm Doma Plans 1.5GW Data Center Portfolio in Thailand
Newly formed Doma, a data center development firm, has revealed its ambitious plan to build 1.5GW of data center capacity across Thailand.
The joint venture is set to acquire 300 acres of freehold land across Chachoengsao, Chonburi, and Rayong provinces, with a total planned power capacity of 1.5GW.
The core and shell facilities will cater to data center operators, hyperscalers, and GPU-as-a-service providers. Further details on specifications and location weren’t shared.
The multi-phase project aims to cater to the increasing digital transformation in the region, supported by government initiatives and private sector investments. Doma’s commitment includes state-of-the-art designs and integrating sustainable practices into its operations.
Yondr Group Expands into Canada with Toronto Data Center Plans
Yondr Group is expanding into Canada with plans to establish a new data center in Toronto. This development is part of Yondr’s broader strategy to enhance its presence in North America.
Adam Sharp, development director at Yondr Group, said: “Our Toronto data center campus will support one of North America’s high-growth digital infrastructure hubs, and underpins our commitment to delivering scalable, secure, and cost-efficient data centers that play a vital role in bolstering the digital economy and accommodating future technologies.”
The Toronto facility will offer significant capacity to support the growing demand for cloud and enterprise services in the region. Yondr is focusing on speed-to-market delivery while ensuring operational sustainability.
Avaio Unveils 300MW Data Center Campus in Virginia
Avaio Digital Partners has disclosed plans for a 300MW data center campus in Appomattox County, Virginia. The project will span multiple phases, catering to hyperscale and enterprise clients.
Mark McComiskey, managing partner of AVAIO Digital said: “We are delighted to be working with Appomattox County, Virginia to make a major investment in the region’s digital and electrical infrastructure that will address the growing demand for digital services in a highly sustainable manner.”
Avaio’s initiative highlights Virginia’s growing prominence as a data center hub in the US. The campus will incorporate renewable energy solutions, aligning with sustainability goals and local economic development.
CyrusOne Buys Data Center in Ashburn from Powerhouse
CyrusOne has completed the acquisition of a data center in Ashburn, Virginia, previously leased from Powerhouse. The purchase reinforces CyrusOne’s foothold in the world’s leading data center market.
Upon asking for request, PowerHouse’s representatives shared this quote from Doug Fleit, CEO & Co-founder of AREP & PowerHouse, confirming the news: “This sale is an incredible milestone for PowerHouse and our joint venture with Harrison Street. With several projects underway across the country and a growing pipeline of developments, we remain laser-focused on serving the growing demands of hyperscale providers and creating long-term value for our communities and the broader industry.”
This move enables the company to expand its capacity in Ashburn, supporting increasing demands from hyperscale and enterprise customers while optimizing long-term operational costs.
Amazon India Acquires Land in Mumbai for Data Center Growth
Amazon India has purchased a significant parcel of land in Mumbai as part of its data center expansion strategy. This acquisition underscores Amazon’s commitment to scaling its cloud infrastructure in India, one of the fastest-growing markets for digital services.
In 2023 AWS acquired a 4-acre plot in the Mumbai suburb of Powai, on which it will also build a data centre.
The cloud giant has a local zone already open in India in Delhi. A local zone is an extension of a cloud region that offers a subset of standard cloud services that tend to be more latency-sensitive.
Local zones are also planned for Chennai, Kolkuta and Bengaluru.
The planned facility will enhance Amazon Web Services’ capabilities to support businesses and governments in the region.
Bangkok Land Deal Enables $500M Data Center Development
A landmark land deal in Bangkok has set the stage for a $500 million data center project. This initiative reflects Thailand’s emergence as a strategic hub for digital infrastructure in Southeast Asia.
The investment aligns with a broader trend of rapid growth in Asia’s data centre capacity. Michael Glancy, Managing Director for Thailand and Indonesia at JLL, said: “Thailand’s strategic location and favourable investment environment make it an ideal market for data centre operators.”
Glancy added that the doubling of Asia’s data centre capacity from 2,500 MW in 2022 to 5,000 MW in 2023, underscoring the region’s burgeoning digital infrastructure landscape.
The facility will cater to hyperscale and enterprise clients, contributing to the region’s digital economy growth. Renewable energy and cutting-edge technology are key aspects of the project.
Brazilian Firm Launches $200M Data Center Investment Fund
A Brazilian firm has announced a $200 million fund dedicated to data center investments across Latin America. The fund aims to bridge the digital infrastructure gap in the region by targeting strategic locations and modern facilities.
Alessandro Lombardi, founder and CEO of Piemonte Holding, said: “Piemonte Capital offers Brazilian investors an entry point into the data centre sector, which has so far been dominated by large international asset managers. We will meet the growing demand for capital allocation in one of the most promising sectors of the economy, developing the right digital infrastructure that Brazil needs.”
This initiative will drive economic growth and meet the rising demand for cloud services and digital transformation.
NorthC continues to grow in Europe, with expansions in the Netherlands and Germany
NorthC, provider of regional data center services in the Benelux and DACH region, is set to expand its European operations further in 2025 and 2026. With these expansions, NorthC meets the growing demand for sustainable and reliable IT infrastructure and data center capacity. By establishing new data centers in Frankfurt and Berlin, NorthC is further implementing its ambitious international growth strategy.
“The growing digitisation of business processes and government services across Europe is fueling a rising demand for reliable, scalable, and sustainable data center capacity,” said Alexandra Schless, CEO of NorthC Datacenters. “These new locations are an important milestone in our growth strategy. With a network of over 20 data centers across Europe, we are well-positioned to serve our customers regionally, working closely with various IT partners and network providers.”
NTT Data to Build 290MW Data Center in Johor Bahru, Malaysia
NTT Data has unveiled plans to construct a 290MW data center in Johor Bahru, Malaysia. This facility will serve as a key regional hub for NTT’s global network, catering to cloud providers and enterprises. With a focus on sustainability and scalability, the project reaffirms Malaysia’s growing role in Asia’s data center landscape.
The first building with an initial capacity of 48MW is planned to launch in April 2027 and the data center project will feature new technologies like direct liquid cooling.
Johor has experienced a phenomenal surge in data center development. In just a few years, the state’s capacity has skyrocketed from a modest 10MW to over 1,000MW, making it a regional powerhouse.
AI Hyperscaler NScale Raises $155M to Scale Operations
NScale, an AI-focused hyperscaler, has secured $155 million in Series A funding to accelerate its growth and expand its infrastructure. The company aims to enhance its capabilities in delivering AI-driven solutions and support its global operations. This significant investment highlights the growing market interest in AI and hyperscale services.
“The AI market is scaling rapidly, and so are we,” comments Joshua Payne, CEO of Nscale. “Nscale manages every layer of infrastructure in the value chain to meet the intensive needs of large-scale AI customers. In particular, the largest risk to the market’s ability to scale is the large contiguous tranches of electricity required to power these large GPU superclusters. Nscale has a 1.3GW pipeline of sites in our portfolio, which allows us to design from the ground up, the data centre, the supercluster and the cloud environment end-to-end for our customers.
Raya Holding Sells Stake in Data Center Subsidiary
Raya Holding, an Egyptian technology company, has sold a significant stake in its data center subsidiary. The transaction reflects Raya’s strategy to monetize assets and focus on its core business areas. This deal is expected to enhance the subsidiary’s growth potential by attracting new investments and partnerships, strengthening its position in the regional data center market.
Ahmed Khalil, CEO of Raya Holding, had previously emphasised the importance of “reliable, scalable, and certified digital infrastructure” for Egypt and Africa’s technological advancement.
The collaboration with Africa50 is expected to facilitate the company’s regional expansion plans and drive technological innovation in the data centre sector.
Amr Helal, CEO of CI Capital, which acted as Raya Holding’s financial advisor in the transaction, said: “This partnership with Africa50 will further strengthen Raya Data Centers’ position as a leading provider of innovative and reliable data solutions, supporting their vision for regional expansion and technological advancement.”
DAMAC Group Enters Southeast Asia’s Data Center Market
DAMAC Group has announced its entry into the Southeast Asian data center market. The expansion plan includes developing state-of-the-art facilities to cater to the growing demand for digital services in the region. By leveraging advanced technologies and sustainable practices, DAMAC aims to position itself as a key player in Southeast Asia’s digital infrastructure ecosystem.
The Southeast Asian outlay is part of a plan to spend $5 billion to $7 billion on expanding Edgnex operations around the world. This move comes as Southeast Asia emerges as a key digital hub for AI and cloud service. Southeast Asia is one of the fastest growing data centres regions in the Asia Pacific. In light of the 2019 Singaporean moratorium on new data centres – since lifted, data center developments have surged in countries such as Malaysia, Thailand, Indonesia, the Philippines, and Vietnam.