Sharechat Logo

NZ Super Fund to invest US$115M in North American data centres

Friday 12th April 2019

Text too small?

New Zealand's $41 billion Superannuation Fund will invest up to US$115 million in North American data centres as it seeks to capitalise on the growing demand for data infrastructure. 

The investment is being made alongside vehicles managed by CIM Group, a North American real estate and infrastructure owner and operator, the fund said. The investment will be operated by CIM on behalf of the NZ Super Fund and includes potential access to some of CIM’s pipeline of future data centre transactions and the six data centres it already has at various stages of development and operation.

“Data centres offer strong infrastructure-like returns underpinned by exponential growth in digital data," said NZ Super Fund head of external investments and partnerships Del Hart. 

"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."  

The fund's investment is in the provision and leasing of data centre facilities and infrastructure and not in data centre operation, it added. 

CIM's data centres are located across North America in San Francisco, California; Toronto, Ontario; Orangeburg, New York; Chicago, Illinois; and Cheyenne, Wyoming.

The fund also has a 39 percent investment in New Zealand information technology company Datacom, which has a network of data centres in New Zealand and Australia.

The NZ Super Fund is a sovereign wealth fund owned by the government to partially pre-fund the cost of national superannuation. It has returned 10.1 percent per annum since inception in 2003.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls; coronavirus spreads to more countries
Looking to $2,000 gold price: Coronavirus is the straw that broke the camel’s back
Hong Kong Stock Exchange Turns From Tough Year to Trading Boom
Treasury 10-Year Yield Tumbles to Record Low on Haven Demand
U.S. Stocks Plunge, Bonds Surge After CDC Warning
26th February 2020 Morning Report
NZ dollar takes a breather, likely to fall further
Hong Kong Stocks Are Trading at Lowest Versus World Since 2004
Stocks Tumble, Havens Gain on Rising Virus Concern
25th February 2020 Morning Report

IRG See IRG research reports