CapitaLand Investment Limited (CLI) has just announced the establishment of a new China data center development fund – CapitaLand China Data Centre Partners (CDCP), which is to cover the development of two hyperscale data centers.

The new data center development project is planned to be completed in 2025, with the intention of delivering over 100 megawatts (MW) of IT capacity upon completion, and are expected to add approximately $1 billion to CLI’s funds, as stated by the company.

“Leveraging our strength in real estate, we are actively building our capabilities in real assets and growing our alternative assets platform. CDCP is our third data center development fund, following the establishment of two such funds in South Korea.  We are excited to bring our capabilities to the China market and advance our ambition of becoming a major global digital infrastructure player,” said Mr. Patrick Boocock, CEO, Private Equity Alternative Assets, CLI, who also oversees the growth of CLI’s global data center business.

As announced, CDCP is established in line with CLI’s strategy to grow its portfolio of new economy assets, having a total equity commitment of about $530 million, with existing and new global institutional investor clients – holding an 80% effective stake in CDCP, and CLI holding the remaining 20%.

“As a leading global real estate investment manager with about 30 years of experience in China, we are able to leverage our wide network and deep expertise to bring quality assets to international investors who are keen to invest in China across different asset classes including data centers.  CLI’s competitive advantage lies in our position as a vertically integrated group in China with a full range of capabilities, from investment sourcing, development, having a strong customer network, to operations.  We have $46 billion of assets under management in China,” said Mr Puah Tze Shyang, CEO of CLI China.

Recently, Keppel also announced it plans to develop a new data center in Huailai County, Hebei Province, Beijing, China, through a partnership between Keppel Data Centre Fund II LP (KDCF II) and Heying, a wholly-owned subsidiary of Tianjin Zhengxin Group Co., Ltd. The new facility is planned to be delivered through a total development cost of approximately $292.0 million (US$210.27 million).