{"id":1004717351,"date":"2024-06-14T03:50:08","date_gmt":"2024-06-14T11:50:08","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004717351"},"modified":"2024-10-29T08:46:36","modified_gmt":"2024-10-29T16:46:36","slug":"vantage-raises-9-2b-for-data-center-investments","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/","title":{"rendered":"Vantage Raises $9.2B for Data Center Investments"},"content":{"rendered":"\n

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\"Vantage
Vantage AZ11 Data Center in Phoenix. Image courtesy of Vantage Data Centers<\/em><\/figcaption><\/figure><\/div>\n\n\n

This week, Vantage Data Centers completed a $9.2 billion equity raise to fund its growth across North America and EMEA, accelerating and extending the company\u2019s strategic capabilities to partner with global hyperscalers in meeting unprecedented cloud and AI demand<\/a>.<\/p>\n\n\n\n

Silver Lake and global alternative asset manager DigitalBridge Group managed the investment vehicles.<\/p>\n\n\n\n

The raise was significantly oversubscribed and upsized by $2.8 billion with participation from multiple global investors.<\/p>\n\n\n\n

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READ ALSO<\/strong>: How AI is Boosting the Data Center Market<\/a><\/p>\n\n\n\n

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Aggregate new investment in Vantage over the past nine months totals approximately $11 billion, of which more than $7 billion is primary equity. That includes a \u20ac1.5 billion ($1.6 billion) investment by Australian Super in September 2023.<\/p>\n\n\n\n

Primary proceeds will be used to fund Vantage\u2019s growth across North America and EMEA, accelerating and extending the company\u2019s strategic capabilities to partner with global hyperscalers in meeting unprecedented cloud and AI demand.<\/p>\n\n\n\n

Vantage owns or controls more than 25 sites in North America and Europe, the Middle East and Africa, totaling over 3 gigawatts of expected capacity. The company anticipates that the new funding will drive an estimated $30 billion of additional development.<\/p>\n\n\n\n

Demand outpacing supply<\/h2>\n\n\n\n

Carl Beardsley, senior managing director and JLL Capital Market\u2019s Data Center leader, told Commercial Property Executive<\/em> the data center sector continues to attract large equity commitments.<\/p>\n\n\n\n

\u201cDemand is far outpacing supply, vacancy is at an all-time low, and lead times to obtain scalable power at these sites is a challenge,\u201d Beardsley said.<\/p>\n\n\n\n

\u201cData center developers often like to acquire and build multi-building campuses which were historically built over time but with the growth in the sector, we are experiencing pre-commitments from end users on full campuses. This has pushed forward the development cycle of data center campuses and the need for more equity at a quicker pace.”<\/p>\n\n\n\n

Howard Berry, principal, National Data Center Solutions with Avison Young, told CPE<\/em> that investors are showing a strong interest in data centers due to record-low vacancy rates of 2 percent in North America and a projected tripling of the current 14 GW capacity to 60 GW over the next five years.<\/p>\n\n\n\n

\u201cThis growth is driven by the increasing demand for AI and large language models,\u201d Berry said. \u201cAs an example, a typical AI data center tenant will spend over $50 million on GPU chips for every 1 MW of deployment, and there is 1,000 MWs in a GW. As digital transformation continues, the need for robust and scalable data storage and processing solutions will likely sustain investor interest in the sector for the foreseeable future.\u201d<\/p>\n\n\n\n

CommercialEdge\u2019s Doug Ressler confirms the interest investors are seeing in data centers, which can provide stable rental income due to long-term leases with tenants.<\/p>\n\n\n\n

As AI data center demand<\/a> grows, property values may appreciate over time, and investing in data centers diversifies a real estate portfolio beyond traditional asset classes.<\/p>\n\n\n\n

As a real estate investment, data centers offer tax benefits, including depreciation deductions.<\/p>\n\n\n\n

AI\u2019s \u2018just in its infancy\u2019<\/h2>\n\n\n\n

Robert Martinek, director at EisnerAmper, told CPE<\/em> that most market participants believe that AI is in its infancy and global data center electricity demand could double over the next four to five years.<\/p>\n\n\n\n

\u201cData center demand from investors commenced with the emergence of Bitcoin mining,\u201d Martinek said. \u201cLately, demand has been directly fueled by the increase in artificial intelligence. Since AI requires massive energy consumption<\/a>, data centers have seen significant increases in occupancy and rental rates during the past 12 to 15 months.\u201d<\/p>\n\n\n\n

The demand in the U.S. economy for services such as AI and cloud computing is high and is expected to continue for decades, Johnathan Meade, chief operating officer at Meade Engineering, told CPE<\/em>.<\/p>\n\n\n\n

\u201cData centers provide the necessary infrastructure to support the next wave of the technological revolution,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Silver Lake and DigitalBridge Group managed the vehicles that formed the fund.<\/p>\n","protected":false},"author":3568,"featured_media":1004717396,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21755,21808,21783,23891,21742],"tags":[33022,40514,44006,52282,38050],"class_list":["post-1004717351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-centers","category-featured","category-investment","category-national","category-latest","tag-avison-young","tag-digital-bridge","tag-jll-capital-markets","tag-silver-lake","tag-vantage-data-centers"],"acf":[],"yoast_head":"\nVantage Raises $9.2B for Data Center Investments - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Vantage Data Centers completed a $9.2 billion equity investment to fund Vantage\u2019s growth across North America and EMEA.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vantage Raises $9.2B for Data Center Investments\" \/>\n<meta property=\"og:description\" content=\"Vantage Data Centers completed a $9.2 billion equity investment to fund Vantage\u2019s growth across North America and EMEA.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-14T11:50:08+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-29T16:46:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/06\/AZ11_Vantage_Data_Centers.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"805\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Richard Berger\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/\",\"name\":\"Vantage Raises $9.2B for Data Center Investments - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/06\/AZ11_Vantage_Data_Centers.jpg\",\"datePublished\":\"2024-06-14T11:50:08+00:00\",\"dateModified\":\"2024-10-29T16:46:36+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6d4c5f1b2f682b3604ad9fe73c19fed7\"},\"description\":\"Vantage Data Centers completed a $9.2 billion equity investment to fund Vantage\u2019s growth across North America and EMEA.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/vantage-raises-9-2b-for-data-center-investments\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/06\/AZ11_Vantage_Data_Centers.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/06\/AZ11_Vantage_Data_Centers.jpg\",\"width\":805,\"height\":620,\"caption\":\"Vantage AZ11 Data Center in Phoenix. 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