AustralianSuper to invest $2.2bn in US data centre company DataBank

Given huge interest, the nation’s biggest super fund is making its first move into the US data centre market by investing $2.2bn in DataBank.

AustralianSuper chief executive Paul Schroder.

Australia’s largest super fund, the $340bn AustralianSuper, is boosting its role in the global data centre market with plans to invest $2.2bn into US data centre developer, DataBank.

The deal, which is part of a $3bn equity raise by DataBank, follows the $2.5bn investment by AustralianSuper last year to buy into data centres in Europe, Middle East and Africa through a minority investment in Vantage Data Centres.

Announcing the deal on Wednesday, AustralianSuper said the $2.2bn investment would be used to finance DataBank’s expansion plans which include the construction of three new data centre campuses in the US.

AustralianSuper’s head of mid risk portfolios, Jason Peasley, said the investment in DataBank came at “an exciting time with strong tailwinds across the sector, coupled with DataBank’s ambitious expansion program and diverse business base.”

“We’re delighted to support DataBank and its experienced leadership team capitalise on the unprecedented demand for cloud and artificial intelligence infrastructure.”

“DataBank will grow and further diversify our global digital infrastructure exposure, a sector we believe will help deliver sustainable, long-term performance for more than 3.4 million members.”

DataBank, which has more than 65 data centres across the US, is planning to build facilities in Dallas, Culpepper Virginia and Atlanta with the combined capacity of a thousand megawatts.

AustralianSuper will get two board seats on DataBank which was named by Deloitte in 2023 and Inc. 5000 in 2024 as one of the fastest-growing private companies in the US.

AustralianSuper's Jason Peasley. Picture: Aaron Francis

DataBank chief executive, Raul Martynek, said he was delighted to have AustralianSuper join alongside existing investors.

“Along with the continued support of our existing investors, it’s a vote of confidence in our strategy and our proven ability to execute and scale the DataBank platform,” he said.

“This investment, and our new campuses, are a game-changer for DataBank and our customers, allowing us to bring this capacity to market now and seize the incredible opportunity ahead of us.”

The deal represents the second time that AustralianSuper has co invested with the New York stock exchange listed DigitalBridge group, an alternative investment group with a portfolio of more than $US84bn in digital infrastructure including investments in mobile phone towers, data centres and fibre optics.

DigitalBridge senior managing director, Jon Mauck, said the company was “thrilled” to welcome AustralianSuper as a key investor in DataBank.

“DataBank’s proven track record, expansion capacity, and strong leadership, position it to take full advantage of the tremendous market opportunities in the US,” he said.

“This investment highlights the resilience and long-term value of digital infrastructure as an asset class.”

The investment will take AustralianSuper’s global real assets portfolio to $60bn, including digital infrastructure assets across Australia, Europe, the Middle East, Africa and North and South America.

The announcement of the deal follows moves by AustralianSuper to expand its US based investment team.

More than $100bn of AustralianSuper’s total assets are now invested in North America with expectations that this will continue to increase over time.

The fund moved its global head of private equity, Mikael Limpalaer, to New York earlier this year from London where he has been since 2020.

The super fund now has some 60 professionals in New York and is planning to grow its team there to more than 120 by 2026.

The investment in the US data centra company comes amid increasing demand for data centres to provide the computing power needed for artificial intelligence uses.

The latest transaction is expected to be finalised by the end of the year.