Three investment firms have joined forces to create EdgeCore Internet Real Estate, an investment vehicle which will build, buy and operate data centres in North America.
Mount Elbert Capital Partners, GIC and OPTrust, which hail from Denver, Singapore and Toronto respectively, have formed EdgeCore. The newly formed company is looking to support around $2 billion (approx. £1.42 billion) in data centre development and investment. It currently holds more than $800 million in equity.
Investors at EdgeCore have already bought land in Arizona and plans to finish deals to acquire more land in Dallas and Reno soon. Construction will start on these sites as soon as acquisitions are complete, with the firm planning to build data centre campuses delivering between 100MW and 200MW of critical power. The company’s first building is expected to be finished in late 2018.
These sites are the first of six North American markets the firm is looking to enter. As well as these giant campuses, it is also expecting to buy land in three Tier I markets in the second quarter, with the intention of starting construction on these sites by the end of the year.
Tom Ray, chairman and CEO of EdgeCore Internet Real Estate and Mount Elbert, said: “We are pleased and honoured to join forces with GIC and OPTrust, which we view as two of the world’s most capable and sophisticated investors.
“We are excited to execute upon our shared vision of creating a scalable North American data centre platform and we look forward to expanding with GIC and OPTrust as we work to grow EdgeCore Internet Real Estate beyond our initial roll out.”
Government-backed Singaporean firm GIC will be the lead anchor investor in EdgeCore. Lee Kok Sun, chief investment officer, GIC Real Estate, said: “GIC is pleased to partner with Mount Elbert and OPTrust in this venture. As a long-term value investor, we believe the secular growth in data consumption and public cloud usage will generate attractive returns in the data centre sector.”
The three firms are relatively diverse. Denver-based Mount Elbert specialises in real assets, including data centres and related infrastructure. GIC, a sovereign wealth fund which manages Singapore’s foreign reserves, specialises in real estate and private equity, while the Canadian OPTrust administers one of Canada’s largest pension plans.