CapitaLand acquires its first hyperscale data centre campus in China for RMB3.66 billion

Expansion into one of the world's largest data centre markets reinforces CapitaLand's ambition to grow data centres into a global business
By: CapitaLand
CENTRAL, Singapore - May 4, 2021 - PRLog -- CapitaLand is investing RMB3.66 billion (approximately S$757.7 million) to acquire its first hyperscale data centre campus in China, the world's second largest data centre market and the largest in Asia Pacific.  The acquisition is via the purchase of 100% equity interest in two companies registered in China.  Located in Minhang District, an established data centre hub in Shanghai, the operating data centre campus serves two of China's largest telecommunications companies.  The hyperscale data centre campus comprises four buildings with a gross floor area of up to 75,000 square metres and up to 55 megawatts of IT power capacity.  CapitaLand is acquiring the data centre campus from AVIC Trust, an investment arm of Shanghai-listed AVIC Capital, and from an unrelated third-party vendor.  The acquisition is expected to be completed by 3Q 2021, subject to fulfilment of certain conditions precedent.

CapitaLand's strategic decision to expand into new economy assets such as data centres, capitalises on the increasing global connectivity and demand for data which has accelerated amid COVID-19.  CapitaLand aims to grow its data centre portfolio into a global business by leveraging its in-house data centre design, development and operational capabilities.

Ms He Jihong, Chief Executive Officer, Data Centre, and Chief Corporate Strategy Officer, CapitaLand Group, said: "5G, artificial intelligence and big data are driving the growth of the digital economy and creating strong demand for data centres.  Data centres are a growing new economy asset class and represent a global investment opportunity and a key strategic business focus for CapitaLand.  We have built core competencies in data centre design, development and operations, and we will look to deploy our expertise to key markets as we grow our data centre portfolio globally.  Our team has successfully redeveloped 9 Tai Seng Drive into a co-location data centre in Singapore, and leased it to leading technology customers.  In recognition of the Group's reputation as a sustainability leader, 9 Tai Seng Drive has also received the top rating of Green Mark Platinum for data centres by Singapore's Building and Construction Authority and Infocomm Media Development Authority.  In Europe, CapitaLand's business space and industrial REIT, Ascendas Real Estate Investment Trust (Ascendas Reit) recently acquired 11 data centres in key markets that complement its existing data centre portfolio in Singapore, expanding its presence into key European data markets."

Tags:Data Center
Industry:Real Estate
Location:Central - Singapore - Singapore
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