Artificial intelligence (AI) has the potential to change the world by solving complex tasks in a matter of seconds. But without the right infrastructure, namely data centers, AI would not be able to develop its full potential.
A symbiotic relationship
The relationship between AI and data centers is symbiotic: while AI benefits from data center infrastructure, it also drives the development of increasingly advanced data center technologies. Thus, data centers are not only an important part of AI development, but also a decisive factor for the progress of the entire technology industry.
The Potential of the Data Storage Market
Investments in data centers have significant potential, as the global data storage market is expected to grow to 2.7 times its current value by 2030. This strong growth is driven by the increasing demand for data storage solutions due to the increasing focus of enterprises on data security, reliability, speed, and cloud-based services.
2,7x
Growth potential
of the data storage market by 2030
Our Investment: Insight into a Success Story
Our best-in-class manager GCM Grosvenor recognized the potential in the field of digital infrastructure and the strong demand for data centers worldwide at an early stage.
After carefully reviewing various data center opportunities, our asset manager GCM Grosvenor invested in Vantage Data Centers North America in March 2017 together with DigitalBridge.
Vantage Data Centers
Vantage Data Centers is a leading provider of hyperscaler data center solutions for large, scalable customers. They offer secure and reliable data centers that store and process business-critical data. With services such as colocation, power, cooling and connectivity, they have a presence in key markets worldwide to ensure low latency and access to major network providers.
At the beginning of 2017, at the time of our initial investment, the portfolio consisted of five operating data centers in Santa Clara, a core area of Silicon Valley, and one in Quincy, WA. Since then, the company has expanded its presence on five continents and 34 different locations. Two of the data centers are located in Switzerland (Winterthur).
The investment benefits from stable cash flows as well as long-term contracts with inflation adjustments in a sector with strong tailwinds. There is also the possibility of expanding the successful business model to additional markets.
Our investment in Vantage Data Centers is a success story that has developed very positively, with a Multiple on Invested Capital (MOIC) of 2.71x and an IRR of 29,5 percent. It shows how investments in infrastructure can be attractive and offer long-term potential.
2,71x
MOIC
March 2017 - March 2024
29,5%
IRR
March 2017 - March 2024
Vantage Data Center, Winterthur
All information in this article has been compiled with care and to the best of our knowledge and belief. Zurich Invest Ltd. and Zurich Investment Foundation assume no responsibility for the accuracy and completeness of the information and disclaim any liability for losses arising from the use of this information. The opinions expressed in this article are those of Zurich Invest Ltd. and Zurich Investment Foundation at the time of writing and are subject to change without notice. This article is for information purposes only and is intended solely for the recipient. This article constitutes neither a solicitation nor an invitation to make an offer, to conclude a contract or to buy or sell investment instruments and is no substitute for detailed advice or a tax review. A purchase decision must be made on the basis of the articles of association, the regulations and the investment guidelines as well as the latest annual report of the Zurich Investment Foundation. This article may not be reproduced in whole or in part without the written permission of the Zurich Investment Foundation or Zurich Invest Ltd. It is expressly not intended for persons whose nationality or domicile prohibits access to such information under the applicable legislation. Every investment involves risks, in particular fluctuations in value and income. In the case of foreign currencies, there is an additional risk that the foreign currency may lose value against the investor's reference currency. Historical performance is not an indicator of current or future performance. The performance data does not take into account any commissions and costs charged on the issue and redemption of units. The issuer and manager of the investment groups is Zurich Investment Foundation, Hagenholzstrasse 60, 8050 Zurich. The custodian bank is State Street Bank International GmbH, Munich, Zurich branch. The managing director of the Zurich Investment Foundation is Zurich Invest Ltd, Hagenholzstrasse 60, 8050 Zurich. The articles of association, regulations and investment guidelines as well as the current annual report and factsheets can be obtained free of charge from the Zurich Investment Foundation. They can also be viewed at www.zurich-anlagestiftung.ch. Only tax-exempt pension funds domiciled in Switzerland are authorised as investors in the Zurich Investment Foundation.
You might also be interested in
Macro and Market Publications
On Zurich's website you will find interesting publications on current economic and market topics. Learn more about financial market-related developments and trends now.
Tom Osterwalder appointed CEO of Zurich Invest Ltd
Tom Osterwalder will take over as CEO of Zurich Invest Ltd (ZIAG) on October 1, 2023. He will replace Martin Gubler, who has been CEO of the company since 2006 and will continue to take over the management of the Zurich Investment Foundation.
