Abu Dhabi Investment Authority (ADIA) and Singapore private equity and real estate firm SC Capital Partners (SCCP) are likely to invest up to $2 billion in data centres across the Asia Pacific region.
The investment program will be managed by SC Zeus Data Centres, a pan-Asian platform developed by SCCP in February. Along with this, ADIA will also invest in SC Capital’s pan-Asian opportunistic investment strategy fund.
The data centre investment program will focus on countries like Japan, Singapore, South Korea and Australia.
ADIA, a sovereign wealth fund of the emirate, manages assets in excess of $708 billion. It clocked 20-year and 30-year annualised rates of return—on a point-to-point basis—of 7.3% at the end of 2021, up from a 20-year rate of 6% and 30-year rate of 7.2% in 2020.
SCCP has been investing across the Asia Pacific region for the last 18 years and has equity commitments of the tune of $2.9 billion. Its limited partners include institutional investors across five closed-end opportunistic funds and one open-end core-plus fund.
ADIA is not the only UAE investor looking to tap into the data centre market. The emirate’s other sovereign wealth fund, Mubadala, is looking to buy a stake in private equity firm EQT AB’s fibre network operator GlobalConnect. The deal could value the business at $7 billion.
Earlier this year, it was reported that Mubadala was in talks to buy Fortress Investment Group from SoftBank Group Corp. in excess of $2 billion. Abu Dhabi-based oil major ADNOC is also in talks to acquire commodities trading house Gunvor Group, Bloomberg News reported in September.