Consortium with MEAG, Infranity, DigitalBridge will start the ball rolling with six data centres
Vantage Data Centers has confirmed the completion of its €2.5bn investment partnership with consortium of investors led by MEAG and Infranity, along with funds affiliated with the investment management platform of DigitalBridge, which will initially comprise six stabilized data centres in strategic locations across Europe.
The data centres span more than 1.8 million gross square feet and 177MW of IT capacity. Vantage’s management team, led by president and CEO Sureel Choksi, will continue to manage and operate these assets as part of its global data centre portfolio.
“This Investment Partnership provides Vantage with multiple partners with deep expertise in digital infrastructure,” said Choksi. “This transaction provides Vantage with additional capital to continue our expansion in new and existing markets across EMEA, capitalising on the extraordinary growth opportunities, driving innovation and delivering state-of-the-art sustainable data centres for our customers.”
“Data centres are the backbone of the increasing digitisation of the economy, and we are proud to invest in a portfolio of top-tier hyperscale data centres in Europe. The investment is another milestone in MEAG‘s strategic expansion into digital infrastructure.” said Dominik Damaschke, the head of infrastructure equity at MEAG – the asset manager of Munich Re Group.
“Infranity has been a prominent investor in digital infrastructure assets in Europe since its business inception with data centres sitting at the heart of the fast and deep digitization of our economies. This partnership with Vantage embodies a shared vision for economic growth and sustainability,” said Jaime Hector, managing director and co-head of equity team at Infranity. The firm is part of a strategic partnership with the Generali Group and manages c.€9 billion of assets under management on behalf of institutional investors as of October 2023.
“This investment highlights our unwavering commitment to advancing cutting-edge digital infrastructure, thereby strengthening our resolve to create a more sustainable and interconnected world,” he added.
Citi served as financial advisor, and Linklaters LLP and Loeb & Loeb LLP served as legal advisors to Vantage. Rothschild & Co served as financial advisor to MEAG and Infranity, and DLA Piper UK LLP served as legal advisor to the Investor Consortium.
Money inflows
Earlier this month Vantage raised $1.35bn in securitised notes to refinance existing financings in place for three data centres on the company’s flagship Northern Virginia campus and five data centres in Quebec, Canada, as well as to fund general corporate needs.
In mid-October Vantage delivered the third and final facility (WA13) on its Quincy, Washington, campus (WA1). The 530,000 sq.ft WA13 data centre added 64MW of IT capacity to its 68-acre campus, now totalling 89MW across nearly 775,000 sq.ft and three facilities.
That $1.35bn deal marked Vantage’s ninth securitisation financing since 2018. Vantage also recently announced that AustralianSuper, Australia’s largest pension fund, would invest €1.5bn to acquire a significant minority stake in Vantage’s EMEA business, joining DigitalBridge as a key shareholder.
In APAC, Vantage currently has more than 200 employees across eight cities in Asia Pacific and anticipates adding 80 new roles by the end of the year. Vantage’s APAC portfolio includes seven campuses that are either operational or under development, including the recently announced 256MW KUL2 campus to be developed in Malaysia.