IPI Data Centers is planning a $1.5bn (€1.36bn) fundraise for its second fund, according to an investor.

New Mexico State Investment Council (SIC) said it will invest $75m in the IPI Partners II data centre fund and has also approved $25m for co-investment opportunities, which gives the sovereign wealth fund the final investment decision on the co-investment deals.

The Partners II fund, which will mostly be investing in the US, will buy a mixture of stabilised and value-add assets and will also engage in some build-to-suit development projects.

The fund targets a low double-digit range net internal rate of return, according to New Mexico SIC.

As previously reported, Maine Public Employees Retirement System also committed $25m to the Partners II fund.

Investment adviser IPI Data Centers was established by Iron Point Partners, which manages private equity real estate funds, and Iconiq Capital, known to manage the investments of high-net-worth individuals in Silicon Valley.

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