Singapore’s GIC-led group targets data centre investments in North America

Singaporean dollar bank notes are arranged for a photograph in Singapore, on Tuesday, Aug. 9, 2011. Singapore reduced the top end of its growth forecast for 2011 as a faltering U.S. economy and the European debt crisis heightened the risks to global expansion. Photographer: Munshi Ahmed/Bloomberg

Singapore’s sovereign wealth fund GIC is leading a group of investors including Denver-based private investment company Mount Elbert Capital Partners and Canada’s pension fund OPTrust to form an investment vehicle to develop, acquire, and operate data centers across North America.

The vehicle, EdgeCore Internet Real Estate, will initially be capitalised with over $800 million of equity targeted to support approximately $2 billion in data center development and investment, GIC said in a statement.

“We are excited to execute upon our shared vision of creating a scalable North American data center platform and we look forward to expanding with GIC and OPTrust as we work to grow EdgeCore Internet Real Estate beyond our initial roll out,” said Tom Ray, Chairman and CEO of EdgeCore Internet Real Estate and Mount Elbert.

EdgeCore’s initial roll out of its North American data center platform will include campus developments across six markets. It has acquired land in Mesa, Arizona, and prior to the end of this quarter the company plans to close upon existing agreements to acquire land in Dallas and Reno, it added.

The company plans to commence construction on each campus immediately upon acquisition. Each campus is designed to deliver between 100 MW and 200 MW of power to customers. It plans to complete the first building in these markets in late 2018.

Additionally, in the second quarter of this year, the company intends to pursue acquiring land in three complementary tier I markets, with a view toward commencing construction on each campus within the year.

Lee Kok Sun, Chief Investment Officer, GIC Real Estate, said, “As a long-term value investor, we believe the secular growth in data consumption and public cloud usage will generate attractive returns in the data center sector.”

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