CapitaLand investing $564m for first hyperscale data centre in China

Facade of CapitaLand’s first hyperscale data centre campus in China.

Singapore-based real estate major CapitaLand Ltd announced that it is expanding into China’s data centre market, the world’s second-largest and the largest in Asia Pacific, by acquiring its first hyperscale data centre in Shanghai for 3.66 billion ($564 million).

CapitaLand said the acquisition of the data centre campus will be made through the purchase of 100% equity interest in two companies registered in China – AVIC Trust, an investment arm of Shanghai-listed AVIC Capital, and from an unrelated third-party vendor.

The hyperscale data centre campus, located in Minhang District, an established data centre hub in Shanghai, serves two of China’s largest telecommunications companies. It comprises four buildings with a gross floor area of up to 75,000 square metres and up to 55 megawatts of IT power capital.

The campus is operated by Daily-Tech, a developer and operator of data centres across China. It adopts sustainable design principles and green building standards.

CapitaLand said its 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.

“Data centres are a growing new economy asset class and represent a global investment opportunity and a key strategic business focus for CapitaLand,” said He Jihong, CEO of Data Centre and chief corporate strategy officer at CapitaLand Group.

In Asia Pacific, the data centre industry is forecast to grow at a double-digit compound annual growth rate by 2024, according to a DBS report. China’s data centre market is expected to grow at a CAGR of 30%, supported by strong demand from cloud service providers and new emerging wholesale customers.

CapitaLand currently has four data centres in Singapore, 11 in Europe, and it is the fund and asset manager for the development of a data centre in Korea.

In Singapore, CapitaLand owns 9 Tai Seng Drive under its balance sheet and operates the data centre, while Ascendas Reit owns three data centres – Telepark, Kim Chuan Telecommunications Complex and 38A Kim Chuan Road. In March 2021, Ascendas Reit’s data centre portfolio expanded to the United Kingdom, the Netherlands, France, and Switzerland.

Ascendas Reit is managed by Ascendas Funds Management Limited, a wholly-owned subsidiary of CapitaLand.

Singapore Reporter/s

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

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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.