Data Center Investment Boom Rolls On: DigitalBridge, Yondr, Vantage, New Albany, AustralianSuper, DataBank

The adage “it takes money to make money” is certainly playing out in real time in the data center industry.

It seems that on a weekly basis a new multi-hundred-million-dollar investment in new data center infrastructure is being announced and providers of equity don’t seem hesitant to arrange billion dollar funding initiatives.

Case in point: the new $50 billion strategic partnership between KKR and Energy Capital Partners to support AI growth through investments in data centers and power generation.

And all of this money is flying around in an industry that sees significant uncertainties in future availability of power and water, and in addressing sustainability and environmental issues.

But the exponential growth in data usage worldwide is creating an unprecedented demand for data center infrastructure, and the only way the demand can be met is by additional spending on building and developing the infrastructure necessary to meet forecasted demand.  

There is no clear end to the demand for artificial intelligence (AI), hyperscale computing, and general purpose cloud computing in sight, and both the data center industry and the investment world are gearing up to meet what seems to be a continually increasing demand for services and funding.

DigitalBridge Ramps Its Global Data Center Strategy

At the end of October DigitalBridge announced the expansion of its global investments with the acquisition of Yondr Group by its DigitalBridge Fund.

With an existing presence in North America, EMEA, APAC, and India and aggressive expansion plans worldwide, the acquisition will enable DigitalBridge to expand its capabilities in digital infrastructure, aligning Yondr’s sustainable and scalable infrastructure approach with DigitalBridge’s goal of supporting AI, cloud, and digital transformation needs.

Yondr will be retaing operational autonomy within DigitalBridge’s portfolio, which will allow it to leverage the group’s extensive resources and expertise, while maintaining its established client relationships. According to Jon Mauck, Senior Managing Director at DigitalBridge:

Known for its focus on eco-friendly and efficient infrastructure solutions, Yondr will enhance DigitalBridge’s visible commitment to sustainable data center operations at a time when there is a difficult balancing act of prioritizing environmental sustainability while meeting the demands of a resource hungry digital ecosystem.

Yondr has a track record of supporting hyperscale clients with sustainable infrastructure, currently offering over 420 MW of committed capacity and a potential for more than 1 GW.

The deal between the two companies is expected to close in early 2025.

Vantage Data Center Jumps Into Ohio with $2 Billion Investment

Vantage Data Centers, growing their investment in hyperscale data centers, has entered the Ohio market with a $2 billion investment in New Albany, establishing its presence in the Midwest.

Addressing the growing demand for secure and sustainable digital infrastructure in central Ohio and the rise of the New Albany area as a data center and technology hub, the DigitalBridge-owned company's 70-acre OH1 data center campus will be built with a focus on sustainability.

Keeping in mind Vantage’s commitment to acheive net-zero by 2030, the project employs the company's “sustainable by design” blueprint and has a goal of achieving LEED Silver accreditation. With a target of 192 MW of IT capacity across more than 1.5 million square feet, the first building on the campus is slated to open in late 2025.

At the announcement, Dana Adams, president, North America at Vantage Data Centers, was quoted, saying:

In addition to addressing infrastructure demands, Vantage’s Ohio expansion includes partnerships with the New Albany Community Foundation and the Columbus State Community College Foundation.

These initiatives will address workforce development needs and strengthen the local economy by creating jobs, supporting education, and driving technological advancement.

This integration and investment with local communities highlights how data center investments can provide enduring social and economic benefits beyond their immediate business objectives.

AutralianSuper Leads $2 Billion Equity Investment In DataBank In the US

AustralianSuper is Australia’s largest superannuation fund, which in the US would be described generally as a retirement investment/pension fund.

As we’ve previously reported, such funds are becoming larger investor in the data center market, and AustralianSuper has committed $1.5 billion to a $2 billion equity raise announced by DigitalBridge-owned data center provider DataBank.  

The successful equity raise includes another $483 million from existing DataBank investors and is AustrailianSuper’s first in the US.

DataBank has been aggressively increasing its footprint, announcing, in the last year a 480 MW campus in south Dallas, a 192 MW campus in Culpeper, VA, and a 120 MW campus in Atlanta. The continued expansion expects to add more than 850 MW of power to the company’s existing 330 MW footprint.

This capital investment will be used to fiund the company’s continuing growth with Raul Martynek, DataBank’s CEO, pointing out that the interest in equity investment shows confidence in DataBank’s strategy and the company’s ability to execute and scale their platform.

And as noted just this week by real estate news site The Real Deal, DataBank plans to add another data center to its 292-acre site in Red Oak, Texas, as the latest move in its bid to build out a huge campus south of Dallas. The Dallas Morning News reported that the $256 million, two-story facility dubbed DFW10 will span 425,000 sq ft (SF), with construction slated to begin next February with completion expected in the summer of 2028.

Phase One plans for DataBank's Red Oak campus call for 4-8 buildings spanning 3.4 million SF. The operators neighbors include Google, who is developing a $600 million data center in Red Oak, and Compass Datacenters, who is in the process of expanding its operations there with an estimated $300 million invested across three new facilities.

Commenting on AustralianSuper’s first foray into the US data center market, Derek Chu, Head of American Real Assets at AustralianSuper said:

Global investment in the data center industry is not simply a matter of funding efforts within North America reaching out to the rest of the world. As this aformentioned investment shows, the potential of the data center industry, in the US and beyond, is attracting investment interest worldwide, and on a significant scale.

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