AustralianSuper Leads $2 Billion Investment in DataBank for AI-Driven Data Center Expansion

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On Tue, 15 Oct, 4:08 PM UTC

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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 12. The investment round was led by AustralianSuper, Australia's largest pension fund, which committed A$2.2 billion ($1.5 billion) to the initiative 13.

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 14. 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 year 1.

DataBank's ambitious expansion program includes the development of three state-of-the-art facilities:

  1. A 120-megawatt campus in Atlanta
  2. A 480-megawatt campus in south Dallas
  3. A 192-megawatt campus in Culpeper, Virginia 1

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" 1.

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 1. 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 AirTrunk 12.

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 1. The data center market has become increasingly attractive to institutional investors seeking to benefit from the AI-driven digital transformation.

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 23. 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 4. 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.

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