“Data centres are the back office of the AI boom, so you can’t ignore the trend,” Dalal said. “But large capex + low initial utilisation can crush profitability. I’m not buying stocks just because companies are entering Dalal added that replacing storage hardware is expensive and frequent, making depreciation a very real cash cost, unlike other infrastructure plays.Valuation comfort: Only in selective pocketsAccording to Dalal, Indian markets have turned complacent about high valuations, making stock-picki ...

Core Insights - Spain's ACS is nearing a partnership valued at 23 billion euros ($26.8 billion) with BlackRock's Global Infrastructure Partners to develop data centers [1] Company Summary - ACS is actively pursuing a significant investment opportunity in the data center sector through collaboration with a major investment firm [1] - The partnership with BlackRock's Global Infrastructure Partners indicates ACS's strategic focus on infrastructure development [1] Industry Summary - The data center industry is experiencing substantial investment interest, as evidenced by the large-scale partnership between ACS and BlackRock [1] - This collaboration highlights the growing demand for data infrastructure, driven by increasing digitalization and data consumption [1]

A consortium comprising of KKR and Singtel is in talks with banks for a loan of around $3.8 billion to support its proposed purchase of ST Telemedia Global Data Centres, according to sources https://t.co/xIW90Y8NKE ...

Core Viewpoint - KKR & Co and Singapore Telecommunications are in advanced negotiations to acquire over 80% of ST Telemedia Global Data Centres, aiming for full ownership for more than S$5 billion (approximately $3.9 billion) [1] Group 1 - The acquisition would significantly enhance KKR & Co's and Singapore Telecommunications' presence in the data center sector [1] - The deal reflects the growing demand for data center services amid increasing digitalization and cloud computing trends [1] - This transaction is part of a broader trend of consolidation in the data center industry as companies seek to scale operations and improve service offerings [1]

Group 1 - Spending on new UK data centres is projected to reach £10 billion annually by 2029, representing a more than five-fold increase from £1.75 billion spent in 2023 [1] - Investment in the UK data centre sector is being driven by AI demand, with tech giants expected to invest £25 billion over the next five years and nearly 100 new data centre projects planned [2] - The largest planned data centre project in the UK is a $13 billion "hyperscale" facility in North East England proposed by Blackstone, indicating a shift in development beyond London [3] Group 2 - The surge in global data centre demand and projects has been significantly influenced by the release of ChatGPT in late 2022, as investments in generative AI are anticipated to transform work and life [4]

Core Insights - Westbridge Renewable Energy Corp is expanding its data centre portfolio with a new project in Alabama, aimed at diversifying its asset base and addressing the growing demand for AI-ready data centres [1][2] - The Alabama Data Centre Project is strategically located near major fibre routes and renewable energy sites, providing reliable power and low-latency connectivity [2] - The company aims to integrate renewable energy assets with data processing facilities, positioning itself at the intersection of renewable energy and artificial intelligence [3] Company Strategy - The expansion into Alabama aligns with Westbridge's long-term vision of creating a diversified platform that supports renewable energy transition and digital technologies [4] - The company is advancing a pipeline of solar, battery energy storage, and data centre projects across North America, focusing on locations with grid capacity and fibre connectivity [4] Market Position - Westbridge operates in four key jurisdictions: Canada, the U.S., the U.K., and Italy, delivering long-term returns through an international portfolio of renewable energy assets [5] - The company has a strong track record with over 40 development projects worldwide, providing investors access to early-stage greenfield solar and energy storage projects [5]

Core Insights - Disruptions in logistics services lead to annual losses of approximately $16 billion for the global technology sector, representing 8% of the technology logistics market [1] Group 1: Impact of Logistics Disruptions - The technology sector is facing increased demands for faster delivery and greater reliability due to the rise of AI, cloud infrastructure, and data centers [2] - Geopolitical instability and trade uncertainty are identified as major influences on supply chain strategy by 91% of surveyed technology leaders [3] - Disruptions have resulted in more customer complaints for 87% of companies, with 66% reporting lost contracts due to supply chain issues [5] Group 2: Factors Affecting Supply Chain - Recent changes in US tariff policies impacted 70% of surveyed companies, while 68% were affected by the semiconductor shortage [3] - Companies investing in warehousing, international shipping, and sustainability experience lower disruption-related costs [4] - Focused investment in risk management and resilience planning can reduce disruption costs by up to 35% [4] Group 3: Importance of Resilience Planning - Strengthening supply chain resilience allows technology firms to restore operations quickly and maintain customer relationships during disruptions [4] - Many technology companies have inadequate resilience plans, with half of those surveyed losing over a month of productive time due to disruptions [6] - Reliable delivery is crucial for customer experience, as 59% of companies reported negative effects on brand reputation due to disruptions [5]

Core Insights - Sydney's data centre market is experiencing significant growth, with vacancy rates dropping from 9% to 5.2%, indicating its rising status as a regional hub for data centres [1][8] - The decline in vacancy rates is primarily driven by sustained demand for cloud services and AI workloads, with a vibrant development pipeline and new entrants in the market [2][8] - Major investments are reshaping the landscape, including Macquarie Data Centres' acquisition of land for a potential 150MW data centre and Stack Infrastructure's plan for a 450MW campus, marking one of the largest developments in Sydney's history [3][9] Investment and Acquisition Activity - Partners Group has expanded its presence by acquiring Digital Halo in Singapore and GreenSquareDC in Australia for US$759 million, aiming to create a forward-thinking data centre platform [4] - Vocus Group is set to acquire TPG Telecom's fibre infrastructure assets and its Enterprise, Government, and Wholesale business for US$3.42 billion, a significant consolidation in the telecom sector [5] Cloud Adoption Trends - Cloud adoption is accelerating in Australia, exemplified by the Commonwealth Bank's migration to Amazon Web Services (AWS) and the Department of Defence's US$324.71 million contract with Microsoft for cloud services [6][10] - CareSuper is also transitioning its applications and data to Microsoft Azure, reflecting a broader trend of digital transformation across various sectors [6] Conclusion - Sydney's data centre market is not only resilient but also evolving dynamically, driven by strong demand, strategic investments, and ongoing digital transformation across industries [7]

Core Insights - The Indonesia Investment Authority (INA) is focusing on digital infrastructure, healthcare, and renewable energy as it seeks foreign partnerships to support Indonesia's economic development [1][2] Group 1: Fund Overview - INA was established in 2020 with an initial capital of $5 billion from the government and began operations in 2021 [2] - The fund currently manages 163.4 trillion rupiah (approximately $10 billion) in assets and has expanded its investment strategy to include hybrid capital and private credit [2] - INA is Indonesia's first sovereign wealth fund, now smaller than the newly launched Daya Anagata Nusantara Investment Management Agency, which has $20 billion in state assets [3] Group 2: Investment Focus - The fund is prioritizing investments in data centers and digital infrastructure, including sub-sea cables, to meet the growing demand for data independence and resiliency [3][4] - INA has partnered with Granite Asia to invest over $1.2 billion in Indonesia's tech and AI ecosystem, including backing the DayOne data center campus in Batam [4] - Artificial intelligence is a key area of focus, with plans to explore practical applications, particularly in healthcare [5] Group 3: Renewable Energy - Renewables remain a significant focus for INA, highlighted by a successful investment in Pertamina Geothermal Energy in collaboration with Masdar Clean Energy [5] Group 4: Financing Strategy - INA aims to support cross-border growth by providing financing options outside of the traditional bank-dominated structure prevalent in Asia [6] - The fund addresses the challenges faced by Indonesian companies in international expansion, where domestic banks may not be able to provide adequate support [6]

Core Viewpoint - Bain Capital has agreed to sell its Chinese data centre business, WinTriX DC Group, in a transaction valued at $4 billion, marking the largest M&A deal in China's data centre industry history [1][2]. Group 1: Transaction Details - The acquisition will be led by a consortium headed by Shenzhen Dongyangguang Industry (HEC), which includes institutional investors such as insurance companies and local government funds [2]. - The deal is expected to conclude in the first quarter of next year, pending regulatory approval [5]. Group 2: Company Background - WinTriX DC Group's China operations, known as Chindata, have become a significant hyperscale data centre platform since 2018, playing a crucial role in China's digital transformation [3]. - Chindata is recognized as one of China's leading digital infrastructure platforms, boasting unmatched scale and technical capabilities [4]. Group 3: Financial Insights - ByteDance is the largest customer of WinTriX, accounting for 86% of its revenue in 2022, as reported by Fitch Ratings [5].