New Zealand’s Super Fund to invest $115m in North American data centres
The investment is being made alongside vehicles managed by North American real estate and infrastructure operator CIM Group.
New Zealand’s $41bn Super Fund is set to invest up to $115m in North American data centres to capitalise on the rapid demand for digital infrastructure caused by the growth in data.
The investment includes possible access to certain of CIM’s pipeline of future data centre transactions and its existing portfolio of six data centres at various stages of development and operations.
The existing portfolio is owned through one or more joint ventures with CIM Group’s managed vehicles.
“Data centres offer strong infrastructure-like returns underpinned by exponential growth in digital data,” said Del Hart, NZ Super Fund Head of External Investments and Partnerships.
“We are seeing increasing customer demand for offsite data centres as enterprises either shift data management to third party providers or move to the cloud.
“Furthermore, by 2021, data volumes are expected to be nearly three times 2016 levels.”
The NZ Super Fund’s investment with CIM is in the provision and leasing of data centre facilities and infrastructure and not in data centre operation.
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The data centres are located across North America in San Francisco, California; Toronto, Ontario; Orangeburg, New York; Chicago, Illinois; and Cheyenne, Wyoming.
“As the market demand for flexible data centre space increases, we believe that our portfolio of data centre properties located in key metro markets in North America including New York, Toronto, Chicago, and San Francisco serves both existing technology and enterprise tenants as well as new customers,” said Avi Shemesh, Co-founder and Principal of CIM.
“It provides access to a dense network of fibre providers and trans-continental connectivity to support their evolving business needs.”
The Fund will co-invest alongside CIM Group’s managed vehicles, and the investment will be operated by CIM on behalf of the NZ Super Fund.
The Fund also has a 39% investment in New Zealand information technology company Datacom, which has a network of data centres in New Zealand and Australia.
The New Zealand $41bn NZ Super Fund is a global investment fund established by the New Zealand Government to help pre-fund universal pensions.