New Zealand infrastructure investor Infratil is doubling down on data centres, committing up to $254 million (£120 million-£130 million) to buy 40 per cent of London data centre business Kao Data.
Kao Data's current owners are Legal & General Group, one of Europe's largest asset managers, and Goldacre, founder of Kao Data and part of the Noé Group, a family run investment and asset management business.
After completion, they will each retain a 30 per cent stake, NZX and ASX listed Infratil announced today. The owners intend to build Kao Data into a billion dollar multi-site data centre platform.
Kao Data owns a 15-acre data centre campus in Harlow, north of London with one data centre built and a second to begin this financial year. Once fully developed, the campus will be home to four energy efficient data centres, all powered by renewable energy.
Kao’s advanced data centres are designed to meet their specialist high-performance computing requirements, with its first housing Nvidia’s Cambridge-1, the most powerful supercomputer in the UK. It provides computing capacity to healthcare companies such as AstraZeneca and GSK.
Kao Data has also recently signed an agreement to acquire two UK prime location data centres with a long-term anchor lease from a large financial services business. The purchase will enable Kao to deliver multi-site services for its clients and expand potential capacity to around 55MW.
“With global demand for connectivity continuing to rise, this is an excellent opportunity to expand our digital infrastructure portfolio and build on our successful data centre platform investment in Australia and New Zealand," the CEO of NZX and ASX-listed Infratil, Jason Boyes, said,
"We were an early mover into this sector, acquiring CDC Data Centres in 2016, which has delivered exceptional performance."
Boyes described Kao Data as a "rare opportunity" to invest in one of the fastest growing data centre markets in the world.
"We will bring our sector experience alongside our partners’ capability and relationships to continue to scale up this business, with the aim of delivering a sizeable multi-site platform," he said.
Lee Myall, CEO, Kao Data, welcomed the announcement. "This investment presents a strategic opportunity to accelerate our mission of supporting the computing requirements of advanced industries, and to do so sustainably," he said.