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
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