AustralianSuper Leads $2 Billion Investment in DataBank for AI-Driven Data Center Expansion
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Australian pension fund leads $2 billion DataBank raising amid AI frenzy
(Reuters) -U.S.-based data center developer DataBank has raised nearly A$3 billion ($2.01 billion) in a bid to build three planned facilities across the United States, with pension fund AustralianSuper leading the raise. AustralianSuper, the country's largest pension fund, on Wednesday said it had committed A$2.2 billion to DataBank's raising and would emerge as a minority owner of the U.S.-based firm. The pension fund would also appoint a company's board director. The raising is the latest sign of growing investor appetite in artificial intelligence, which in turn has resulted in a boost for data centre proposals. "Our investment in DataBank comes at an exciting time in its growth trajectory with strong tailwinds across the sector, coupled with DataBank's ambitious expansion program and diverse business base," said Derek Chu, head of American Real Assets at AustralianSuper Deals in the data centre space have increased globally due to the growing popularity of AI with Blackstone's A$24 billion acquisition of Australian AirTrunk in the spotlight. The AI frenzy, which has fuelled the rise of tech stocks across the world, has created a need to build physical centers to support the storage of data. Global investors and asset managers have leveraged the high demand for digital infrastructure to reap profits by putting their money into the development of centres. Southeast Asian countries have been particularly attractive given their strong growth potential, cheap labour and land. DataBank's controlling investor, DigitalBridge, which appoints a majority of the company's board, also participated in the raising. DataBank is planning to build three facilities in data centre areas: a 120-megawatt campus in Atlanta, a 480-megawatt campus in south Dallas and a 192-megawatt campus in Culpeper, Virginia. Not a newcomer in the market, AustralianSuper had invested A$2.5 billion in a major European data centre business last year, alongside DigitalBridge.
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Australian pension fund leads $2 bln DataBank raising amid AI frenzy
Oct 16 (Reuters) - U.S.-based data center developer DataBank has raised nearly A$3 billion ($2.01 billion) in a bid to build three planned facilities across the United States, with pension fund AustralianSuper leading the raise. AustralianSuper, the country's largest pension fund, on Wednesday said it had committed A$2.2 billion to DataBank's raising and would emerge as a minority owner of the U.S.-based firm. The pension fund would also appoint a company's board director. Advertisement · Scroll to continue The raising is the latest sign of growing investor appetite in artificial intelligence, which in turn has resulted in a boost for data centre proposals. Deals in the data centre space have increased globally due to the growing popularity of AI with Blackstone's (BX.N), opens new tab A$24 billion acquisition of Australian AirTrunk in the spotlight. DataBank's controlling investor, DigitalBridge (DBRG.N), opens new tab, which appoints a majority of the company's board, also participated in the raising. Advertisement · Scroll to continue ($1 = 1.4916 Australian dollars) Reporting by Sneha Kumar; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab
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AI Boom Sparks $2 Billion Bet on DataBank Led by Australian Pension Fund
Data center developer DataBank has raised $2 billion to build three facilities planned across the US, the latest sign of superheated investor interest in artificial intelligence. AustralianSuper, the country's largest pension fund, led the raise with $1.5 billion. It will become a minority owner of DataBank and appoint a director to the company's board. DigitalBridge, which also participated in the raise, is already DataBank's control investor and appoints the majority of the company's board of directors.
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AustralianSuper pours $2.2b into US data centre firm amid AI fever
Gift 5 articles to anyone you choose each month when you subscribe. Data centre developer DataBank has raised $US2 billion to build three facilities planned across the US, the latest sign of superheated investor interest in artificial intelligence. Super giant AustralianSuper led the raise with $US1.5 billion ($2.2 billion). It will become a minority owner of DataBank and appoint a director to the company's board. DigitalBridge, which also participated in the raise, is already DataBank's control investor and appoints the majority of the company's board of directors.
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AustralianSuper, Australia's largest pension fund, spearheads a $2 billion investment in DataBank to construct three new data centers across the United States, capitalizing on the growing demand for AI infrastructure.
AustralianSuper Leads Massive Investment in DataBank
In a significant move reflecting the growing appetite for artificial intelligence (AI) infrastructure, U.S.-based data center developer DataBank has successfully raised nearly A$3 billion ($2.01 billion) to fund the construction of three new facilities across the United States
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. The investment round was led by AustralianSuper, Australia's largest pension fund, which committed A$2.2 billion ($1.5 billion) to the initiative1
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.Strategic Partnership and Expansion Plans
As part of this deal, AustralianSuper will emerge as a minority owner of DataBank and secure a seat on the company's board of directors
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. This strategic partnership aligns with the pension fund's previous investments in the data center sector, including a A$2.5 billion investment in a major European data center business last year1
.DataBank's ambitious expansion program includes the development of three state-of-the-art facilities:
- A 120-megawatt campus in Atlanta
- A 480-megawatt campus in south Dallas
- A 192-megawatt campus in Culpeper, Virginia
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AI Boom Driving Data Center Demand
The substantial investment in DataBank is a clear indicator of the surging demand for data centers, primarily driven by the rapid growth of AI technologies. Derek Chu, head of American Real Assets at AustralianSuper, commented on the timing of the investment, stating, "Our investment in DataBank comes at an exciting time in its growth trajectory with strong tailwinds across the sector, coupled with DataBank's ambitious expansion program and diverse business base"
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.Global Trends in Data Center Investments
The AI frenzy has not only fueled the rise of tech stocks worldwide but has also created an urgent need for physical infrastructure to support data storage and processing
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. This trend has led to increased deal activity in the data center space globally, with notable transactions such as Blackstone's A$24 billion acquisition of Australian AirTrunk1
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.Investment Landscape and Market Dynamics
Global investors and asset managers are capitalizing on the high demand for digital infrastructure, particularly in Southeast Asian countries, which offer strong growth potential, affordable labor, and land
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. The data center market has become increasingly attractive to institutional investors seeking to benefit from the AI-driven digital transformation.Related Stories
Key Players and Ownership Structure
While AustralianSuper is taking a significant stake in DataBank, the company's controlling investor remains DigitalBridge, which appoints the majority of DataBank's board and also participated in this funding round
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. This ownership structure combines the expertise of established players in the digital infrastructure space with the financial backing of one of Australia's largest institutional investors.Implications for the AI and Data Center Industries
This substantial investment in DataBank underscores the critical role that data centers play in supporting the growth of AI technologies. As companies and researchers continue to push the boundaries of AI capabilities, the demand for robust, scalable, and efficient data storage and processing facilities is expected to grow exponentially
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. The strategic locations chosen for DataBank's new campuses reflect the company's focus on serving key markets and enhancing its position in the competitive data center landscape.References
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