Logistics real estate developer GLP has closed its first digital infrastructure fund at RMB2.6 billion ($358 million) from China-based and international institutional investors, per an announcement.
The fund, GLP China IDC Income Fund I, will acquire a fully operational, high-performance data centre developed by GLP and fully leased to a leading e-commerce company. Located in the Greater Beijing region, the seed asset is constructed to tier III+ standards, with a strong emphasis on environmental sustainability and energy efficiency.
GLP China IDC offers build-to-suit, turn-key and powered shell solutions for both hyperscalers and enterprise customers, and employs innovative and sustainable solutions to improve energy efficiency and reduce the carbon impact of its assets.
GLP said the new economy asset class has been a strategic focus for the firm since 2018.
“Digital infrastructure is essential to the adoption and advancement of AI. GLP China IDC Income Fund I is indicative of strong investor demand for stable income streams backed by high-quality real assets with the potential of long-term capital appreciation,” said Teresa Zhuge, Executive Vice Chairman and Chairman of the Executive Committee of GLP China.
GLP estimated the data centre market in China, driven by the rise in adoption of AI, cloud services, 5G communications and Internet of Things, to increase by $274 billion at a CAGR of over 38% from now to 2029.
The company controls assets that will deliver 1.4 GW secured IT capacity in total, including 20 data centres across the four core regions of Beijing-Tianjin-Hebei, the Yangtze River Delta, the Greater Bay Area and the Mid-Western Region.
Last year, Singapore-based GLP sold its international business to US-based Ares Management for $3.7 billion, to focus on investing in the Chinese market.
It closed the China Income Fund XIII at 2.8 billion yuan late last year.
