Singapore's ST Telemedia Global Finalised Significant Investment in its European Counterpart

ST Telemedia Global Data Centres (STT GDC), a leading Singapore-based data centre provider, has completed a significant investment in its European subsidiary, VIRTUS Data Centres, from Macquarie Asset Management (VIRTUS). Macquarie Asset Management will take a 40% stake in VIRTUS as part of the transaction, which will be funded by the Macquarie European Infrastructure Fund 7.

STT GDC is one of Asia's largest data centre operators, with over 170 data centres spread across nine countries: Singapore, the United Kingdom, India, China, Thailand, South Korea, Indonesia, Japan, and the Philippines. Across all of its facilities, the company supports an aggregate IT load of more than 2.2 gigatonnes with a net floor area of more than one million square metres.

The investment will allow STT GDC to expand its operations in the European Economic Area (EEA), with new data centre campuses planned in Germany, Italy, Spain, Poland, and other European countries. STT GDC and MAM have ambitious plans for the region, with nearly £2 billion invested in its target markets over the next five years. STT GDC's current leading position in the UK, where it manages 11 data centre facilities in the Greater London region through VIRTUS, will be bolstered by the expansion.

“This is an exciting milestone for STT GDC. Macquarie Asset Management’s investment is a testament to the strength and scalability of our data centre business. This substantial capital injection coupled with both partners’ unique expertise will help us accelerate our expansion into the European Economic Area to capture the enormous opportunities ahead and cement our leadership in the industry,”

said Bruno Lopez, President & Group Chief Executive Officer, ST Telemedia Global Data Centres.

“STT GDC’s high-quality platform has captured the new consumption habits of consumers, and the digitisation of business processes, as the digital economy continues to thrive. We are delighted to partner with STT GDC to help scale VIRTUS’ operations. Through this long-term investment, coupled with our sustainability expertise, we intend to help drive their ambitious expansion across continental Europe where we believe there will be sizeable growth opportunities for data centre players during the next decade,”

said Nathan Luckey, a Senior Managing Director within Macquarie Asset Management’s Real Assets team.

According to KPMG research, double-digit growth in Europe's data centre industry is required over the next ten years to ensure data resiliency as the continent's economies become more data and cloud centric. According to the same study, the industry will grow at a 15% CAGR across Europe through 2025, and at an 11% CAGR over the decade, driven in the short term by enterprise cloud adoption and data sovereignty requirements. In the latter half of the decade, technologies such as the internet of things (IoT) and artificial intelligence (AI) are expected to drive demand for data centre services.