CapitaLand launches Chinese data centre fund

CapitaLand launches Chinese data centre fund

Data Centre 2.jpeg

CapitaLand Investment Limited (CLI) has established a Chinese data centre development fund called CapitaLand China Data Centre Partners (CDCP).

CDCP has pledged to invest in two hyperscale data centre projects in Greater Beijing, and once completed, will add approximately S$1 billion to CLI’s management funds .

“We are seeing strong investor interest as the surge in demand for cloud computing, 5G technology, and e-commerce are driving growth in this sector. Leveraging our strength in real estate, we are actively building our capabilities in real assets and growing our alternative assets platform," said Patrick Boocock, CEO of private equity alternative assets, CLI.

"CDCP is our third data centre development fund, following the establishment of two such funds in South Korea. We are excited to bring our capabilities to the China market and advance our ambition of becoming a major global digital infrastructure player.”

CDCP has S$530 million in total equity committed, with global institutional investor clients holding an 80% in the fund and CLI holding the remaining 20%.

CapitaLand's portfolio is comprised of 26 data centres in Asia and Europe with total assets under management of S$6 billion, once all projects are completed.

Data Centre 1.jpeg

“As a leading global real estate investment manager with about 30 years of experience in China, we are able to leverage our wide network and deep expertise to bring quality assets to international investors who are keen to invest in China across different asset classes including data centres," said Puah Tze Shyang, CEO of CLI China.

"CLI’s competitive advantage lies in our position as a vertically integrated group in China with a full range of capabilities, from investment sourcing, development, having a strong customer network to operations. We have S$46 billion of assets under management in China."

The two hyperscale data centre projects are due to be completed in 2025 and will deliver over 100MW of power to meet growing demand.

They will also be designed, built and certified against LEED Gold standards and incorporate energy-saving solutions, such as high efficiency fan wall cooling systems, adopt temperature management best practices, and recycle waste heat from the servers to heat offices.

“CDCP will invest in two highly sought-after data centre projects in prime locations," added Michelle Lee, managing director of private funds (data centre), CLI .

"China’s data centre market is currently the second largest in the world and the largest in Asia Pacific and is projected to grow 24% annually until 2025. There is strong interest in CLI’s future data centre projects in China and Asia Pacific at large, and we are actively seeking to grow in this sector.”

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