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ESR raises $1bn for data centre fund

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ESR Group Limited has announced the first close of over US$1 billion in equity commitments for its Data Centre Fund 1 vehicle which is aimed at developing its growing data centre business.

ESR DC Fund 1 brings together some of the largest institutional investors in the world and includes sovereign wealth and pension funds.

ESR will raise separate discretionary capital sleeve to co-invest into the fund which will likely close the balance of the fund at the hard cap of US$1.5 billion.

Additionally, the partners have an upsize option of an additional equity commitment of US$1.5 billion, that would bring the total investment capacity to as much as US$7.5 billion over time.

Jeffrey Shen and Stuart Gibson, Co-founders and Co-CEOs of ESR, said: "APAC is the prime market for data centre development and investment in the new era of digitalisation.

“The substantial first close of our inaugural data centre fund marks a significant milestone for ESR as we continue to grow and scale our digital infrastructure business.

"As the largest New Economy real estate platform in APAC, we are looking to play into the critical need for digital infrastructure in a big way going forward by leveraging our core competitive advantages – our deep land sourcing capabilities, best-in-class design and construction capabilities.”

ESR’s current data centre development portfolio comprises data centre projects located in major data centre clusters across Asia, including Hong Kong, Osaka, Tokyo, Seoul, Sydney, Mumbai and Singapore, delivering 300MW IT load.

The completion of the deal is still subject to relevant regulatory approvals.

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