NZ Super Fund, the NZ$41-billion New Zealand sovereign wealth fund, has announced that it will invest up to $115 million in North American data centre by co-investing alongside CIM Group, a real estate and infrastructure owner and operator.
CIM Group will be acting as an external fund manager for the investments on behalf of the NZ Super Fund.
Part of the investment will include access to CIM Group’s existing portfolio of six data centres, owned through joint ventures with CIM’s managed vehicles and its future data centre transactions.
“Data centres offer strong infrastructure-like returns underpinned by exponential growth in digital data,” Del Hart, NZ Super Fund head of external investments and partnerships.
“We are seeing increasing customer demand for offsite data centres as enterprises either shift data management to third party providers or move to the cloud. Furthermore, by 2021, data volumes are expected to be nearly three times 2016 levels,” said Hart.
With the investment, NZ Super Fund is targeting to be engaged in leasing the data center facilities and infrastructure located across North America in San Francisco, Toronto, Orangeburg, Chicago and Cheyenne.
The Fund also has a 39 per cent investment in New Zealand information technology company Datacom, which has a network of data centres in New Zealand and Australia.
The NZ Super Fund, established to help pre-fund universal pension, has returned 10.1 per cent per annum since inception in 2003.