Global investors queue up to invest in Asia data centres

They remain unfazed by sizzling valuations driven by demand for AI-based services

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SINGAPORE/HONG KONG/SYDNEY - Global investors are queueing up to invest in data centre operators in the Asia-Pacific, either by buying stakes directly or via public offerings, unfazed by their rich valuations that are driven by demand for services based on artificial intelligence (AI).

Many industry executives say the regional data centres will continue to command high valuations due to the nascent nature of the industry and its growth outlook. Some, though, say a lack of robust infrastructure could cast a cloud on their outlook.

Data centres house computer servers and equipment that companies use to process and store data.

A valuation benchmark for the sector was set in September when a consortium led by alternative asset manager Blackstone agreed to buy Australian data centre group AirTrunk for an implied enterprise value of more than A$24 billion (S$20.7 billion), or over 20 times the target's forward core earnings.

The process to sell a minority stake in Indonesian data centre NeutraDC, for example, has attracted interest from Singtel and BDx Data Centres, among others, two sources with direct knowledge of the matter said.