Data Center Investment News — 26/01/2024

Starwood Capital Announces New Global Data Centre Investment Platform

Starwood Capital reveals plans for a new global data centre investment platform, indicating a strategic move into the data centre industry.

Barry Sternlicht, Chairman and CEO of Starwood Capital said: “We are incredibly excited about the launch of Starwood Digital, which will provide us with additional opportunities to grow our data centre portfolio amidst strong industry tailwinds.

“With the strong demand for data centre services in the United States and growing needs to support end uses such as artificial intelligence, we see continued opportunity to invest in this growing sector.”

The announcement suggests growing interest from major investors in the data centre sector.

Exclusive: I Squared Capital in Talks to Acquire $6.5bn Global Switch Real Estate

I Squared Capital is reportedly, discussing acquiring Global Switch real estate assets worth $6.5 billion.

In 2019, Jiangsu Shagang Group Co. emerged as the largest shareholder of Global Switch following the acquisition of an additional 24% stake in a £1.8 billion (US$2.2 billion) transaction from British billionaire brothers David and Simon Reuben. Notably, other major stakeholders in Global Switch include Avic Trust Co.

This potential deal reflects the ongoing trend of significant investments and acquisitions in the data centre real estate market.

DTCPS Maincubes Expands Data Centre Footprint in Germany’s Financial Capital

DTCPS Maincubes announces an expansion of its data centre footprint in Germany’s financial capital, signalling continued growth in the data centre industry.

Oliver Menzel, CEO of maincubes, said: “maincubes stands out from other providers for several reasons.

“First, as a European company, we are independent and capable of offering the best solutions for data protection and data sovereignty. Second, we understand that efficiency and sustainability are crucial factors for organizations in the hyperscaler and artificial intelligence sectors when selecting a data centre. With our successful Eco-Management and Audit Scheme (EMAS) registration and the implementation of the ESG framework according to GRESB, we not only meet current customer requirements but are also prepared for future EU regulatory requirements for data centre operators.”

The move highlights the strategic importance of Frankfurt as a key data centre hub.

Google to Build $1bn UK Data Centre as it Readies for AI Mass Adoption

Google unveils plans to construct a $1 billion data centre in the UK, emphasizing preparations for the widespread adoption of artificial intelligence (AI).

The building will power up the Aplhabet’s subseries services including Google Cloud, Workspace (which includes Gmail, Docs, Sheets and more), Search and Maps.

The company also mentioned that the data centre, similarly to its more recent investments, will play a critical role in supporting its artificial intelligence (AI) innovations and growing cloud needs in the UK.

The investment reflects the increasing demand for data infrastructure to support AI applications.

State of Mississippi Doubles Down Efforts to Secure $10bn Hyperscale Data Centre Project

Mississippi intensifies efforts to secure a $10 billion hyperscale data centre project, underscoring the state’s commitment to becoming a significant player in the data centre industry.

The investment for Madison County is set to be the largest economic project in the state’s history, four times larger than the previous record-holder for the largest economic project in Mississippi history, a US$2.5 billion investment by Steel Dynamics in Lowndes County.

The project will involve the establishment of two hyperscale data centre complexes at two different industrial park sites covering a total combined area of 1,713 acres.

The project’s scale indicates the growing importance of hyperscale facilities.

Real Estate Firm TA Realty Creates Hyperscale Data Centre Development Arm

TA Realty establishes a hyperscale data centre development arm, highlighting the increasing involvement of real estate firms in the hyperscale data centre market.

The development arm is headed by Tim Shaheen. With more than 20 years in the data centre and IT sectors, Shaheen previously served in executive roles at EdgeConneX and Aligned Data Centres before joining TA Realty in 2023.

This move signifies the recognition of data centres as valuable real estate assets.

GI Partners’ LightEdge Expands into Minneapolis Data Centre Market

LightEdge, backed by GI Partners, expands its presence into the Minneapolis data centre market.

Jim Masterson, CEO of LightEdge, said: “We are excited to enter the Minneapolis market, invest in this rapidly growing region and deliver our best-in-class IT solutions to a new state.

“We are dedicated to building and supporting tailored cloud solutions delivered from in-market data centres that meet the rigorous demands of enterprise-grade operations and empower local companies with seamless connectivity and the robust infrastructure needed to thrive in today’s digital landscape.”

This expansion points to the strategic importance of regional growth and the potential for increased data centre demand in Minneapolis.

Oracle’s Data Centre in Israel

Oracle makes progress on its data centre in Israel, led by Safra Catz.

The US tech giant’s CEO Safra Catz revealed the plans during a visit to Israel this week. She said her company would double its investment in the country.

The development highlights the global expansion efforts of major cloud providers, reinforcing Israel’s significance in the data centre landscape.

Tract Plans 400MW Data Centre Park in Eagle Mountain, Utah

Tract reveals plans for a massive 400MW data centre park in Eagle Mountain, Utah, reflecting the continued trend of large-scale data centre developments.

“Data centres continue to migrate to campus deployments and the building blocks for land and power are getting bigger to keep pace with the underlying demand,” said Graham Williams, chief investment officer of Tract. “Building on Utah’s data centre sales tax exemption and low power rates, Eagle Mountain has distinguished itself through thoughtful planning and having sufficient contiguous land to meet the campus needs of tomorrow. We appreciate the partnership with the city and look forward to accelerating responsible infrastructure for data centre development.”

The project’s scale underscores Utah’s appeal as a data centre destination.

AWS to Invest $1.5bn in Cloud Computing in Japan

 Amazon Web Services (AWS) announces a $1.5 billion investment in cloud computing infrastructure in Japan, emphasizing the growing importance of the Japanese market in the global cloud landscape.

The cloud giant previously invested 1.51 trillion yen (~$10.2bn) between 2011 and 2022 in the country. Yearly, this works out at just under $1bn spent per year. The new announcement will see this increase to more than $5bn a year for the next three years.

Amazon’s Bedrock AI offering was made available in Tokyo in October 2023. The company also invested $100m in a generative AI innovation centre in June 2023.

Macquarie Data Centres to Develop Third Data Centre at Sydney, Australia Campus

 Macquarie Data Centres announces plans for the development of a third data centre at its Sydney, Australia campus.

The new data centre will bring the total IT capacity at the Macquarie Park Data Campus in Syndey’s North Zone up to 63MW and will be able to provide the necessary power and cooling needed by cloud computing and artificial intelligence workloads.

The expansion underscores the increasing demand for data centre services in the Asia-Pacific region.

Powerhouse Data Centres Expands into Reno, Nevada with 900,000 Sq. Ft Campus

 Powerhouse Data Centres expands its presence into Reno, Nevada, with a sprawling 900,000 square foot campus.

“As the growth of AI throughout all industries continues to push hyperscale demand roll out, sites like PowerHouse Reno will serve the market with near-term power delivery at attractive costs with reliable renewable energy components,” said Doug Fleit, co-founder, and CEO of AREP and PowerHouse. “This is another important addition to our portfolio of data centres, and we are extremely pleased to be continuing our relationship with Harrison Street as our partner in this venture.”

The expansion highlights the company’s strategic approach to meeting the growing data centre needs in the region.

Ardent Closes on Acquisition of Data Centre in Pittsburgh, Pennsylvania

Ardent completes the acquisition of a data centre in Pittsburgh, Pennsylvania, signalling ongoing investment activities in key data centre markets.

Corey Needles, MD for Ardent Data Centres, said: “Completing this acquisition is an important milestone in the execution of Ardent’s strategy to build and offer the most efficient, secure, and optimized infrastructure to power the next era of innovation enabled by HPC. We’re looking forward to beginning the retrofitting process as we shape it into a purpose-built facility that will join Ardent’s flagship European site in Boden, Sweden, as another industry leading HPC data centre.”

The move aligns with the broader trend of acquisitions driving industry growth.

Powerhouse Plans 800MW Campus in Virginia’s Spotsylvania County

 Powerhouse Data Centres outlines plans for an 800MW campus in Spotsylvania County, Virginia.

The site is being designed to appeal to “hyperscale users that seek well-located developments with access to power and good fibre connectivity,” said Doug Fleit, co-founder, and CEO of AREP and PowerHouse. “This is the ‘speed to market’ that hyperscale users are demanding today and which provides low latency data transport options back to their campuses and peering sites in Ashburn.”

The ambitious project emphasizes the increasing scale of data centre developments and the significance of Virginia as a data centre hub.

Bulk Breaks Ground on 42MW Data Centre in Norway

 Bulk Infrastructure commences the construction of a 42MW data centre in Norway, contributing to the country’s emergence as a data centre destination.

“The rapid growth in occupancy at the N01 Data Centre Campus underscores the undeniable demand for highly scalable, cost-effective, and sustainable solutions,” said Gisle M. Eckhoff, EVP, Bulk Data Centres at Bulk Infrastructure. “The success of our strategic approach is reflected in the trust from our owners and partners, which will help us to build data centres of the future that meet the demands of our growing customer base.”

The development aligns with Norway’s focus on sustainable and scalable data infrastructure.

Web Werks Signs $2.4 Billion MOU at WEF to Build DC Park in Karnataka