- CapitaLand China Data Centre Partners will develop two hyperscale
data centres in Greater Beijing, bringing CapitaLand's data centre portfolio to 
26 across Asia and Europe

CapitaLand Investment Limited (CLI) has established a China data centre 
development fund, CapitaLand China Data Centre Partners (CDCP). CDCP has 
committed to invest in two hyperscale data centre development projects in 
Greater Beijing, and upon completion of the projects, will add approximately 
S$1 billion to CLI's funds under management. 

Total equity committed to CDCP is S$530 million, with existing and new global 
institutional investor clients holding an 80% effective stake in CDCP, and CLI 
holding the remaining 20%. CDCP's establishment is in line with CLI's strategy 
to grow its portfolio of new economy assets under management and enhance 
long-term business resilience.

The data centre development projects are expected to be completed in 2025 and 
will deliver over 100 megawatts (MW) of power to meet growing demand from the 
world's most populous national capital city. Located close to established data 
centre clusters and key network nodes of leading Chinese cloud service 
providers and internet companies, the two data centres are poised to capture 
strong demand from Beijing.

Mr Patrick Boocock, CEO, Private Equity Alternative Assets, CLI, who also 
oversees the growth of CLI's global data centre business, said: "As one of the 
fastest growing new economy asset classes providing critical digital 
infrastructure for the global economy, data centres present a tremendous 
opportunity and are a key strategic focus for CLI. We have built core 
competencies in data centre design, development, commercial sales and 
operations, with 26 data centres across Asia and Europe that will offer more 
than 500 MW of power on a completed basis. We are seeing strong investor 
interest as the surge in demand for cloud computing, 5G technology, and 
e-commerce are driving growth in this sector. 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 centre 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."

Mr Puah Tze Shyang, CEO of CLI China, said: "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 centres. 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 S$46 billion[1] of assets under management in 
China."

Ms Michelle Lee, Managing Director, Private Funds (Data Centre), CLI, said: 
"CDCP will invest in two highly sought-after data centre projects in prime 
locations. China's data centre market is currently the second largest in the 
world and the largest in Asia Pacific[2], and is projected to grow 24%[3] 
annually until 2025. There is strong interest in CLI's future data centre 
projects in China and Asia Pacific at large, and we are actively seeking to 
grow in this sector."

China's rapid digitalisation driving demand for data centres

The accelerated growth of digital usage in China is driving demand for data 
centres. In 2021, China's data centre market grew 34.6% year-on-year to S$60 
billion, following an impressive 43.3% year-on-year growth in 2020 partly due 
to increased online demand amid COVID-19[4]. In keeping with its 14th Five-Year 
Plan, China aims to increase the contribution of digital economy businesses to 
its GDP to 10% by 2025. It is increasing its support for 6G research and 
development as well as boosting innovation in strategic industries. Against 
this background, cloud computing has emerged as a critical component of digital 
technology, with China's public cloud service market growing 35% in 1H 2022[5]. 

CapitaLand's global data centre portfolio

CapitaLand has a portfolio of 26 data centres in Asia and Europe with total 
assets under management of S$6 billion on completed basis. Its vertically 
integrated data centre capabilities in Singapore, China, India, South Korea and 
Europe enable it to value add at every stage of the asset's life cycle.

Leveraging CLI's fund management capabilities, CLI set up its first data centre 
fund in October 2020 and a second data centre fund in May 2021 with 100% 
third-party capital.

Green features of CDCP's assets

The two data centres will be designed, built and certified against Leadership 
in Energy and Environmental Design (LEED) Gold standards. They will incorporate 
energy-saving solutions, such as high efficiency fan wall cooling systems, 
adopt temperature management best practices, and recycle waste heat from the 
servers to heat offices. Together, these eco-friendly solutions and initiatives 
can achieve over 20% in energy savings when compared to other data centres 
using conventional cooling and heating systems. The data centres will also 
feature rooftop solar energy harvesting systems to generate on-site renewable 
power to reduce carbon footprint, as well as intelligent infrastructure 
management systems which optimise and improve the energy efficiency of the 
operating systems.

About CapitaLand Investment Limited (www.capitalandinvest.com)

Headquartered and listed in Singapore, CapitaLand Investment Limited (CLI) is a 
leading global real estate investment manager (REIM) with a strong Asia 
foothold. As at 30 September 2022, CLI had about S$130 billion of real estate 
assets under management, and about S$86 billion of real estate funds under 
management (FUM) held via six listed real estate investment trusts and business 
trusts, and about 30 private vehicles across Asia Pacific, Europe and USA. Its 
diversified real estate asset classes cover retail, office, lodging, business 
parks, industrial, logistics and data centres.

CLI aims to scale its FUM and fee-related earnings through fund management, 
lodging management and its full stack of operating capabilities, and maintain 
effective capital management. As the investment management arm of CapitaLand 
Group, CLI has access to the development capabilities of and pipeline 
investment opportunities from CapitaLand's development arm. 

As a responsible company, CLI places sustainability at the core of what it does 
and has committed to achieve net zero emissions by 2050. CLI contributes to the 
environmental and social well-being of the communities where it operates, as it 
delivers long-term economic value to its stakeholders.

Follow @CapitaLand on social media ( 
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Issued by:CapitaLand Investment Limited (Co. Regn.: 200308451M)

Important Notice

The admission and listing of CapitaLand Investment Limited on the Singapore 
Exchange Securities Trading Limited was sponsored by J.P. Morgan (S.E.A.) 
Limited. J.P. Morgan (S.E.A.) Limited assumes no responsibility for the 
contents of this announcement.

[1] As at 30 September 2022
[2] Report by Savills: Asia Pacific Data Centres
[3] Report by Technavio: Data Centre Market in China by Component – Forecast 
and Analysis 2021-2025
[4] KZ Consulting
[5] IDC China

Source:CapitaLand

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