CPP Partners With Blackstone On Asia-Pacific Data Center Deal Valued At $22 Billion
CPP Partners With Blackstone On Asia-Pacific Data Center Deal Valued At $22 Billion
Canada’s largest pension plan takes 12% stake in Australia-based AirTrunk
Blackstone and the Canada Pension Plan Investment Board, the country’s largest pension fund, formed a partnership to buy AirTrunk, an Asia-Pacific data center operator in a deal valued at $22 billion as the artificial technology boom drives further demand for digital systems and support networks.
AirTrunk operates data centers in Australia, Singapore, Hong Kong, Japan and Malaysia. The deal is expected to be completed this year, pending regulatory approval, and marks one of the largest data center deals to date and Blackstone’s largest investment in the Asia-Pacific region.
CPP Investments and private equity giant Blackstone are buying AirTrunk from Macquarie Asset Management and other investors, including PSP Investments. Montreal-based PSP Investments manages the public sector pension plans of the federal public service, the Canadian Forces and the Royal Canadian Mounted Police.
Under the proposed deal, CPP Investments will acquire a 12% interest in AirTrunk in the transaction with an implied enterprise value of more than $22 billion, or 24 billion Australian dollars. That equates to a value of approximately 16 billion United States dollars.
“AirTrunk is another vital step as Blackstone seeks to be the leading digital infrastructure investor in the world across the ecosystem, including data centers, power and related services,” said Jon Gray, president and chief operating officer of Blackstone, in a statement announcing the deal.
CPP Investments said it partnered with the investment giant to expand the pension fund’s presence in the asset class.
‘Significant Growth’
“CPP Investments has invested in the Asia Pacific data centre sector for several years, and we have witnessed significant growth in this space, fueled by a strong demand for digital infrastructure and, more recently, the increasing adoption of artificial intelligence,” said Max Biagosch, senior managing director and global head of real assets & head of Europe for CPP Investments, in a statement.
CPP Investments currently has data centre joint ventures and investments in hubs in Australia, Hong Kong, Japan, Korea, Malaysia and Singapore, as well as the U.S.
The transaction is subject to approval from the Australian Foreign Investment Review Board.
In a recent report, CBRE said continued worldwide power shortages are significantly inhibiting the global data center market’s growth.
“Sourcing power is a top priority for operators across all regions, including North America, Europe, Latin America and Asia-Pacific. Secondary markets with ample power should attract more data center investment,” the real estate company said.
It added that “artificial intelligence advancements are projected to significantly drive future data center demand. High-performance computing will require rapid innovation in data center design and technology to manage rising power density needs.”
Source CoStar. Click here for the full story.
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