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.