GIC and Equinix to invest more than $1bn in hyperscale data centres

Singapore sovereign wealth fund GIC and technology company Equinix have teamed up to invest more than US$1bn (€870m) in European ‘hyperscale’ data centres.

The joint venture, of which GIC owns 80%, will acquire two operational data centres in London and Paris, and develop two more in Frankfurt, one in Amsterdam and another in London.

When fully developed, the six ‘xScale’ facilities will provide approximately 155 megawatts of power capacity and will be operated by Equinix.

Hyperscale data centres are designed to respond to increasing demand for data transfer, by increasing scale greatly and quickly.

Lee Kok Sun, CIO of GIC Real Estate, said: “As a long-term value investor, we are confident that the strong growth in data consumption and public cloud data storage will continue to drive secular demand for hyperscale data centres.”

He said the six centres “will generate steady and resilient returns in the long run”.

Charles Meyers, president and CEO of Equinix, said: “It has been a long journey to reach this point, but we are tremendously excited to announce the formation of our first xScale data centres joint venture.

“Partnering with a world-class investment firm like GIC will provide the opportunity to make significant capital investments in order to capture targeted large footprint deployments while continuing to optimise our capital structure.

“The JV structure will enable us to extend our cloud leadership while providing significant value to a critical set of hyperscale customers.

“We look forward to launching similar JVs in other operating regions and believe that these efforts will continue to further differentiate Equinix as the trusted center of a cloud-first world.”

Related images

  • Data centre

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Now