AustraliaSuper Invests $1.5 Billion in US-Based DataBank

DataBank, a leading provider of enterprise-class edge colocation, interconnection, and managed services in the US, has announced a $2 billion equity raise led by AustralianSuper, Australia’s largest superannuation fund, which committed $1.5 billion.

Upon closing of the transaction, AustralianSuper will become a significant minority owner of DataBank and will join the company’s board of directors, DataBank said on Wednesday. The transaction is expected to close by the end of 2024 subject to customary closing conditions.

The capital raise was oversubscribed and, in addition to the $1.5 billion from AustralianSuper, included another $483 million in commitments from existing investors. The investment in DataBank would be AustralianSuper’s first in the US data centre market and the second alongside existing DataBank investor DigitalBridge.

AustralianSuper’s global real assets portfolio now totals nearly $40 billion, and includes digital infrastructure assets across Australia, EMEA and South America.

Proceeds from the raise will be used to finance growth across DataBank’s industry-leading footprint of 65+ data centres in over 27 markets, including the 3 new campuses it has announced in the past year – the 480 MW campus in south Dallas, 192 MW campus in Culpeper, Virginia, and 120 MW campus in Atlanta.

Those sites, as well as expansions in other markets, will add more than 850 MW of power to DataBank’s portfolio, more than tripling its existing 330 MW of power deployed, and enabling it to meet unprecedented demand for Artificial Intelligence (AI), hyper-scale cloud, enterprise and large technology workloads.

Investors Confident

DataBank CEO Raul Martynek said that along with the continued support of the company’s existing investors, it’s a vote of confidence in their strategy and proven ability to execute and scale the DataBank platform.

He said that this investment, and the three new campuses, are a game-changer for DataBank and its customers, allowing the company to bring this capacity to market now and seize the incredible opportunity ahead of us.

Derek Chu, Head of American Real Assets at AustralianSuper, said that their investment in DataBank came at an exciting time in its growth trajectory with strong tailwinds across the sector, coupled with DataBank’s ambitious expansion program and diverse business base.

“We will capitalise on the unprecedented demand for cloud and AI 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,” Chu said.

Together with this transaction, DataBank has raised more than $4 billion in debt and equity over the past 12 months, including a $725 million credit facility announced in April 2024, a $456 million securitisation completed in February 2024, a $345 million construction loan signed in November 2023, and a $188 million equity investment completed in November 2023.