Canada Pension Plan Investment Board (CPP Investments) has committed $1.3bn (€1.1bn) to Ares Management Corporation’s first Japan data centre investment fund which has raised $2.4bn at its final close.
Ares said the Japan DC Partners I (JDC I) fund, which was also backed by other large institutional investors including Singapore-based global investor GLP Capital Partners (GCP), will invest in the development of three data centre campuses in Greater Tokyo.
The campuses will be developed and operated by Ada Infrastructure, a global data centre platform that Ares acquired from GCP.
Blair Jacobson, co-president of Ares, said: “This achievement underscores the leading investment and development capabilities that the combined Ares and GCP International platform brings to Japan’s new economy sectors, and we appreciate the meaningful support from the fund’s investors, including CPP Investments.
“With the increasing adoption of AI and cloud computing technologies positioning Japan as a key market in the global data centre ecosystem, we believe this capital will enable Ares to address supply constraints.”
Max Biagosch, senior managing director and global head of real assets for CPP Investments, said: “The demand for data centres in Asia-Pacific continues to grow due to the increasing need for data processing and consumption.
“As one of the largest data centre markets in Asia, Japan acts as a key connection point between Asia and North America to facilitate efficient data transfer. The commitment to the fund will further advance our global data centre strategy and deliver attractive risk-adjusted returns for CPP contributors and beneficiaries.”
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