CapitaLand Investment’s Research Paper: ‘Asia Pacific Data Centre Investment Strategies in the Digital Age’

CapitaLand Investment has launched its latest research paper on investment strategies for Asia Pacific’s data centre industry as part of its ‘Perspectives’ research series.  Leveraging insights from CLI’s expertise on the ground, the research paper highlights the demand drivers behind the rapid growth of DCs in the region and strategic investment considerations for investors.  The paper also includes a case study on navigating India’s DC sector.

Ms Michelle Lee, CLI’s Managing Director, Private Funds, said: “Digitalisation is a global mega trend driving the growth of data centres.  With the DC sector’s strong secular tailwinds, 97% of institutional investors plan to increase their capital allocation into the sector, particularly in Asia Pacific.  As DCs are more resilient, allocation to this asset class can be an integral part of investors’ portfolio diversification strategy.”

“CLI has accelerated our growth in the DC sector, adding 22 DCs since 2021. we have 27 DCs with about US$4.5 billion assets under management and more than 800 megawatts in gross power across eight countries globally.  CLI has vertically integrated DC capabilities spanning across design, development, sales, and operations.  With DC domain capabilities, combined with our deep market knowledge, deal-sourcing and investment network in Asia, we are well-positioned to partner with investors to tap into the wealth of opportunities in the sector,” added Ms Lee.

Power availability has taken centre stage as a crucial determinant for DC locations.  There is also a growing emphasis on sustainability.  Increasingly, DC users and savvy operators are seeking to reduce their carbon footprints by being more energy-efficient and tapping renewable energy sources.

Investors should also be mindful of the geopolitical, regulatory and technological risks associated with DC investments.  It is therefore crucial for investors to collaborate with DC partners who have a strong network, local expertise, and specialist domain knowledge.

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