ADIA sets $2B investment strategy for data centre investment with SC Capital
The Abu Dhabi Investment Authority (ADIA), one of the largest sovereign wealth funds in the UAE, aims to set up a data centre investment strategy along with Singapore's SC Capital Partners. The strategy could reach equity of $2 billion.
The programme aims to target data centre investments across the Asia-Pacific region, with a focus on South Korea, Australia, Singapore, and Japan. Apart from this, the ADIA is also investing in SC Capital's pan-Asian investment strategy fund, said multiple reports.
Singapore's SC Zeus Data Centre is a pan-Asian platform developed by SC Capital Partners in February 2022. It will be the operating partner for this investment programme.
The reports said ADIA will be managing over $708 billion in assets, with a 20-year annualised rate of return of 7.3% at the end of 2021, calculated on a point-to-point basis. On the other hand, SC Capital Partners also has an 18-year track record of raising over $2.9 billion in equity commitments from a diverse pool of investors.
A report in Zawya stated investments in the Southeast Asian data centre market were increasing. It added that in Q1 2022, the market included close to 200 operational co-location centres with a total IT load of over 1 GW. It added over 50 upcoming facilities are likely to operate by 2025. Within this, Singapore is the leading market.
Edited by Kanishk Singh