CapitaLand allocates $747m in China data center fund

Plans for one of CapitaLand’s hyperscale data centers / Photo credit: CapitaLand

Real estate-focused CapitaLand Investment (CLI) has announced its China data center development fund called the CapitaLand China Data Center Partners (CDCP).

CDCP will invest to build two hyperscale data centers in Beijing, which will support operations for tech companies and deliver over 100 megawatts of power. When these projects are finished in 2025, they will contribute S$1 billion (US$747 million) to CLI’s funds under management.

The total equity committed to CDCP is S$530 million (US$396 million), with investor clients holding an 80% effective stake in the firm and CLI holding 20%.

This is CLI’s third data center development fund – it has two others in South Korea. The firm has 26 data centers in Asia and Europe, offering 500 megawatts of power and amounting to S$6 billion (US$4.5 billion) in assets under management.

“We are seeing strong investor interest as the surge in demand for cloud computing, 5G technology, and ecommerce are driving growth in this sector,” said Patrick Boocock, CEO of private equity alternative assets at CLI.

China’s data center market is set to grow by US$55 billion between 2020 and 2025 with a compound annual growth rate of 23.7%.

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Currency converted from Singapore dollars to US dollars: US$1 = S$1.34.