AustralianSuper has announced a $2.2 billion investment in US company DataBank.
Upon closing of the transaction, the fund will become a significant minority owner of DataBank and will join the company’s board of directors.
It marks the mega fund’s first investment in the US data centre market and the second alongside existing DataBank investor, DigitalBridge.
Namely, back in 2023, AustralianSuper struck a $2.5 billion deal with DigitalBridge Group to acquire a significant minority stake in Vantage Data Centers Europe, Middle East and Africa (Vantage EMEA).
This latest investment is expected to support growth across DataBank’s more than 65 data centres in over 27 markets, including three new campuses in Dallas, Atlanta, and Virginia. The investment was part of a nearly $3 billion equity raise by DataBank which included more than $700 million in commitments from existing investors.
According to AustralianSuper’s head of mid-risk portfolios, Jason Peasley, the investment comes at an “exciting time” amid strong tailwinds for the sector and DataBank’s ambitious expansion program.
“We’re delighted to support DataBank, and its experienced leadership team, capitalise on the unprecedented demand for cloud and AI infrastructure,” Peasley said.
The investment brings AustralianSuper’s global real assets portfolio to nearly $60 billion, including digital infrastructure assets across Australia, EMEA and South America.
“DataBank will grow and further diversify our global digital infrastructure exposure, a sector we believe will help deliver sustainable, long-term performance for more than 3.4 million members,” he said.
DataBank chief executive Raul Martynek said he was delighted to welcome Australia’s largest super fund alongside existing investors, describing it as a “vote of confidence” for the firm’s strategy and capabilities.
“This investment, and our new campuses, are a game-changer for DataBank and our customers, allowing us to bring this capacity to market now and seize the incredible opportunity ahead of us,” Martynek said.
The transaction is expected to close by the end of 2024 subject to customary closing conditions.
