ST Telemedia Global Data Centres Closes Transaction Introducing Macquarie Asset Management as a Significant Minority Shareholder in its European Subsidiary VIRTUS Data Centre
Investment to enable STT GDC, one of Asia’s leading data centre providers, to significantly expand its European operations
SINGAPORE - Media OutReach - 10 January 2023 - ST Telemedia Global Data Centres (STT GDC), a leading Singapore-based data centre provider, has closed a significant investment from Macquarie Asset Management in its European subsidiary, VIRTUS Data Centres (VIRTUS). The transaction, via Macquarie European Infrastructure Fund 7, will see Macquarie Asset Management take a 40 percent stake to become a significant minority shareholder in VIRTUS.
STT GDC is one of Asia's largest data centre operators and actively manages a portfolio of over 170 data centres in nine countries - Singapore, the United Kingdom, India, China, Thailand, South Korea, Indonesia, Japan and the Philippines. The company supports an aggregate IT load of more than 2.2 gigawatts with a net floor area of >1 million sqm across all of its facilities globally.
The investment will enable STT GDC to scale up its operations in the European Economic Area (EEA), with new data centre campuses planned in European countries including Germany, Italy, Spain, Poland and others. Together, STT GDC and MAM have ambitious plans for the region with close to £2 billion of investment planned in its target markets over the next five years. The expansion will complement STT GDC's current leading position in the UK, where it currently manages 11 data centre facilities in the Greater London region through VIRTUS.
"This is an exciting milestone for STT GDC. Macquarie Asset Management's investment is a testament to the strength and scalability of our data centre business. This substantial capital injection coupled with both partners' unique expertise will help us accelerate our expansion into the European Economic Area to capture the enormous opportunities ahead and cement our leadership in the industry," said Bruno Lopez, President & Group Chief Executive Officer, ST Telemedia Global Data Centres.
"STT GDC's high-quality platform has captured the new consumption habits of consumers, and the digitisation of business processes, as the digital economy continues to thrive. We are delighted to partner with STT GDC to help scale VIRTUS' operations. Through this long-term investment, coupled with our sustainability expertise, we intend to help drive their ambitious expansion across continental Europe where we believe there will be sizeable growth opportunities for data centre players during the next decade," said Nathan Luckey, a Senior Managing Director within Macquarie Asset Management's Real Assets team.
Research from KPMG suggests that double-digit growth is required in Europe's data centre industry during the next 10 years to ensure data resiliency as the continent's economies become more data and cloud centric. The same study also suggests that the industry will enjoy ~15% CAGR across Europe through 2025 and ~11% CAGR for the decade, driven in the short term by enterprise cloud adoption and data sovereignty requirements. Technologies such as the internet of things (IoT) and artificial intelligence (AI) are expected to drive demand for data centre services in the latter part of the decade.
The transaction reached completion on 22 December 2022 following the satisfaction of customary closing conditions and regulatory approvals.
ST Telemedia Global Data Centres
ST Telemedia Global Data Centres is one of the fastest-growing data centre providers, headquartered in Singapore. With a global platform of data centres in the world's major business markets of over 170 facilities across Singapore, UK, India, China, Thailand, South Korea, Indonesia, Japan and Philippines, STT GDC offers a full suite of best-in-class, highly scalable and flexible data centre solutions, connectivity and support services that best meet customers' current and future colocation needs. For more details, please visit sttelemediagdc.com.
Macquarie Asset Management
Macquarie Asset Management is a global asset manager that aims to deliver positive impact for everyone. Trusted by institutions, pension funds, governments, and individuals to manage approximately £456 billion in assets globally, we provide access to specialist investment expertise across a range of capabilities including infrastructure, green investments, real estate, agriculture & natural assets, asset finance, private credit, equities, fixed income and multi asset solutions.
Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory and risk and capital solutions across debt, equity, and commodities. Founded in 1969, Macquarie Group employs more than 19,000 people in 33 markets and is listed on the Australian Securities Exchange.
All figures as at 30 September 2022. For more information, please visit Macquarie.com
