UK-based PE firm Actis to acquire 75% stake in Korean data centre JV

Nightlife of Seoul. Photo: Pixabay

UK-based private equity firm Actis is taking a 75-per cent stake in a new joint venture that will build and operate a $315-million internet data centre (IDC) in Greater Seoul, South Korea, according to a statement.

The new venture, which is between Actis and GS E&C, the construction arm of GS Group, one of Korea’s largest conglomerates, will build an eight-storey facility within the Pyeongchon Cluster, which has the highest concentration of cloud service providers (CSPs) in Seoul.

The new IDC will be built to Tier 3 standards, featuring 1,600 high-density racks of CSP clients, and a further 400 low-density racks for co-location customers. It will be GS E&C’s tenth data centre project.

The 21-megawatt IDC seeks to address a significant mismatch between supply and demand in Seoul, a city with 95 per cent smartphone penetration, one of the highest in the world, and mobile data traffic that increased by 26 times since 2012.

Brian Chinappi, head of Asia real estate at Actis, noted that Seoul is struggling to meet demand because it only has fewer than five large-scale non-owner occupied data centres available.

“This investment, where land and grid power have been secured, in an area popular with CSPs, will directly help to address that challenge. We are pleased to be working with GS E&C, an experienced local contractor that has built 185MW of existing IDC capacity,” Chinappi added.

The joint venture forms part of Actis’ strategy to expand its footprint in Korea’s fast-growing digital infrastructure segment.

In China, it created a Chinese data centre platform, Chayora Holdings, to develop hyperscale data centre facilities to serve China’s tier 1 markets. Actis also established a $250m pan-African data centre platform, starting with an investment in Rack Centre in Lagos, Nigeria, early this year.

The IDC JV with GS E&C comes about four months after Actis divested a twin-tower office building in southwest Seoul, South Korea, to a consortium of local institutional investors for $447.4 million.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.