Key Trends in Private Equity Data Centre Investment 2021-2025: Hyperscale Demand seen as a Growth Opportunity

DUBLIN, Dec. 29, 2021 /PRNewswire/ -- The "The Future of Data Centre Investment" report has been added to ResearchAndMarkets.com's offering.

This new report considers the reasons for Private Equity investment in Data Centres. Investment from private equity is nothing new. Though Private Equity (PE) & Sovereign Wealth Investors (SWI) are providing new impetus to hyperscale Data Centre investments worldwide and are key players in the introduction of new facilities and the acquisition of existing Data Centres.

The Future of Data Centre Investment report reveals that PE providers are investing in Data Centres and are now doing so on an even large scale with investment running into billions of USD. Additionally, there are more investors and Private Equity investors account for a large share of new Data Centre developments in a number of markets, the report finds.

The report provides profiles insight into eighteen private equity funds investing in Data Centres from Actis Captial to Princeten Digital Group. Furthermore, the report features a forecast for Private Equity Data Centre investment - from the end of 2021 to the end of 2025.

DC companies are now looking for incremental expansion, and it is the Private Equity companies who are now making the large investments in new hyperscale facilities rather than the established DCs, particularly in new or under-served DC markets.

They appear to see DCs as being attractive due to:

• Content & Cloud demand in new markets - such as Indonesia, Poland, Japan
• Hyperscale demand seen as a growth opportunity
• Low churn of DC tenants seen as being attractive

The report concludes that:

• The number of new Private Equity investors is increasing. Real estate companies such as Lendlease are creating joint ventures with an SWFor more often via a private equity partner to spread the cost and risk of large Hyperscale Data Centres investment in new markets.
• Private Equity investors now account for a large share of new Data Centre developments. In a number of Country Markets the analyst finds that Private Equity investors account for the majority of new Data Centre developments - for example boosting Data Centre power capacity by 6 times in Portugal, 1.9 times in Ireland, almost 1.5 times in Brazil, almost 1.2 times in Indonesia and over 0.8 times in Poland.
• Private Equity funds are investing in speculative Data Centre developments in new markets: It is significant that Private Equity funds are willing to invest in large-scale Hyperscale facilities in relatively new markets (including India, Indonesia & Japan) with new power per facility of 50 MW to 100 MW or more - whilst established Data Centre Providers typically invest in their existing Metros as a lower risk strategy.
• Most new Data Centres that are being built in new Metro markets are being built by private equity investors: Private equity funds are focusing on markets where there is a shortage of high-quality Hyperscale Data Centre capacity (including Japan, Poland, Brazil, Indonesia & Portugal) with new space being built outside the main capital city area, taking advantage of lower land costs - in effect private equity funds can take more risk on a longer time-frame than the established Data Centre Provider.
• The Data Centre industry is set for further forecast growth as more private equity investors enter the space: The analyst forecasts that the amount of private equity Data Centre investment is forecast to increase from USD $8 billion up to USD $13.3 billion from the end of 2021 to the end of 2025 - an overall growth of 66% over the 4 year period. Private Equity funds have identified the Data Centre segment as able to generate above average growth from cloud & content users coupled with stable tenants (with low churn levels) and are attracted to those markets with low Hyperscale Data Centre penetration.

Key Topics Covered:

Part 1 - The reasons for Private Equity investment in Data Centres

• The attractiveness of Data Centres for Private Equity investors
• The types of Data Centre Private Equity investments worldwide
• Risks and reward for Private Equity Data Centre investment

Part 2 - Examples of new PE & SWI investment in Data Centres

• Selected global investment by PE & SWI - GIC's investments
• Investments in new markets & companies worldwide
• Investments in existing Data Centre Providers

Part 3 - The future Data Centre market for Private Equity investors

• New developments in Private Equity Data Centre investment
• A forecast for Private Equity Data Centre investment - from the end of 2021 to the end of 2025
• The key trends in Private Equity Data Centre investment

Companies Mentioned

Private Equity companies

• Actis Capital
• Antin Infrastructure Partners
• Berkshire Partners, Blackstone Infrastructure Partners
• Brookfield Infrastructure Partners
• ChinData Group, Data9 Infrastructure
• Datasphere, DWS Group, DigitalBridge
• Digital Edge
• EQT Infrastructure
• Gaw Capital Partners
• Global Technical Realty (GTR)
• IPI Partners
• Piemonte Holding
• Princeton Digital Group (PDG)
• PRP

Data Centre Companies

• AtlasEdge Data Cetre
• ChinData Group Holdings
• Colt
• Data4
• Datum Datacenter
• Digital Realty
• DWS Group
• Echelon Data Centres
• Edge Connex
• EdgeCore Internet Real Estate
• EQT Infrastructure
• Equinix
• EverYondr
• Green Datacenters
• Kao Data
• Linxdatacenter
• Nabiax Data Centres
• NorthC Data Centres
• Pure Data Centers
• Sines 4.0 Digital
• Space DC
• STT GDC ICD
• ST Telemedia
• Stack Infrastructure
• Tamasek
• Telefonica
• Teraco Data Environment
• Vantage Data Centers
• XL Data Centres
• xScale Data Centres
• Yondr Group

For more information about this report visit https://www.researchandmarkets.com/r/iya0qw

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