Gaw Capital Partners, A3 Capital to invest jointly in internet data centres
23 Feb 2023
Gaw Capital Partners, a real estate private equity firm, has formed a joint venture (JV) with A3 Capital to invest into greenfield and under-performing Internet data centre (IDC) assets across key markets in the Southeast Asia region.
The collaboration is aimed at creating a portfolio of Tier-3 certified data centre assets, forming a JV platform with the launch of the Infinaxis Data Centre in Cyberjaya, according to a joint statement by the partners, Infinaxis, the Malaysian Investment Development Authority (Mida) and Malaysia Digital Economy Corporation (MDEC).
Gaw Capital Partners managing director and head of IDC platform for Asia (ex-China) Kok Chye Ong said the company, working together with Infinaxis Data Centre Holdings, will develop, acquire or reposition four to five data centres in different locations throughout Southeast Asia.
In recent years, the Internet data growth in these areas have been further accelerated by the continued digital transformation of enterprises and 5G penetration.
Also, several government initiatives over the last decade have made Malaysia an attractive market for data centres. However, the supply of quality data centres has not caught up with the technical demand from customers. We look forward to exploring more investment opportunities in this market,” he said.
The seed investment in Cyberjaya consists of two greenfield sites with a combined plot area of 12,490 square metres.
“The JV platform will develop a 12 MW information technology (IT) load IDC facility on one of the plots. The IT capacity will potentially be doubled in the future, with the second plot to be developed as an expansion site,” the statement said.
The data centre assets under the JV platform will be operated by Infinaxis, which is staffed by an experienced data centre team originally under A3 Capital.
Mida and MDEC welcomed the JV partnership formed by Gaw Capital Partners and A3 Capital to launch the Infinaxis Data Centre platform as it is enhancing the digital infrastructure in Malaysia.
The statement also said that the JV platform is committed to incorporating environmental, social, and corporate governance principles.