Cloud services market surged by US$10b in final quarter of 2020

  • David Yuile
  • David Yuile

    Founder & Managing Director of Digital Infrastructure

It is a very exciting time in the Digital Infrastructure sector where we back our investment thesis that data centres are the factories of the future and that we are still early in the investment cycle. Key drivers for us continue to be cloud and social media with Artificial Intelligence, IOT and 5G starting to play out.

A few other data points

- Data Centre leasing activity in North America for 2020 was the highest ever at c700MW which was three times 2019 levels and twice 2018 with Hyperscalers and social media being the largest contributors. (North American Data Centers - January 18th)

- Global DC construction estimates indicate c2.9GW (c$25B of investment) under construction, much already spoken for, up from 1.6GW prior year (C W Jan 2021 Data Centre Global Market Comparison)

- Sources of capital to fund this growth continue increase with Infra and PE funds such as KKR, Brookfield and MIRA allocating more investment into the sector. Debt markets also improved for the sector, resulting in lower cap rates.

360 Capital Digital Investment Manager through it’s unique insights and network has already invested c$125M into data centre opportunities and has a strong pipeline of additional investment opportunities.