Data centres: The alternative investment asset class

In 2017 alone, global M&A transaction values in the sector exceeded US$25 billion. A new report by global law firm White & Case, examines how data centers have established themselves as a core member of the ‘alternatives’ real estate sector alongside logistics, self-storage, student housing, healthcare and hotels and leisure.

 

The report is authored by partner James Dodsworth, who leads the Firm’s real estate practice worldwide. James discusses how, for the first time, European governing bodies are beginning to direct and shape the future landscape of the data center industry, following Equinix’s acquisition of UK-listed operator TeleCity Group plc. The deal reportedly doubled Equinix’s European offering, with the addition of 40+ data centers to its European portfolio. Whilst data localization laws that have been implemented by governments worldwide present various challenges to the data center industry, they also create significant opportunities for data center providers that are able to supply the services that enable their multinational clients to satisfy the requirements of these laws. Industry commentators certainly continue to expect the sector to grow.

 

James Dodsworth says: “There are very few asset classes today that have the global reach, growth trajectory and consequent investor appeal that data centers currently enjoy. In this increasingly connected world, the ability to manipulate large scale data is critical to business efficacy, development and success.”