UAE sovereign ADIA sets $2bln data centre investment strategy with SC Capital

UAE sovereign ADIA sets $2bln data centre investment strategy with SC Capital

The Abu Dhabi Investment Authority (ADIA), one of the world's largest sovereign wealth funds, has partnered with Singapore’s SC Capital Partners (SCCP), a private equity real-estate firm, to set up a data centre investment strategy that could reach $2 billion in equity.

The programme targets data centre investments across the Asia Pacific region with a focus on Japan, South Korea, Singapore and Australia, SC Capital said on Wednesday in a release. ADIA is also investing in SC Capital’s pan-Asian opportunistic investment strategy fund, according to a statement.

SC Zeus Data Centres, a pan-Asian platform developed by SCCP in February will be the operating partner for the investment programme.

ADIA is estimated to manage some $708 billion in assets. Its 20-year and 30-year annualised rates of return - on a point-to-point basis - were both 7.3% at the end of last year, up from a 20-year rate of 6% and 30-year rate of 7.2% in 2020.

SCCP has a 18-year track record across Asia Pacific and has raised approximately $2.9 billion in equity commitments from a diverse pool of institutional investors across five closed-end opportunistic funds and one open-end core-plus fund, according to its website.

Globally, spending by end users on global data center infrastructure is