AIIB to invest $150 mn in development of data centres

The Asian Infrastructure Investment Bank (AIIB), a multilateral development bank, will spend $150 million in the creation of data centers that will primarily serve emerging Asia.

The Keppel Data Centre Fund II (KDCF II), a private equity company managed by Alpha Investment Partners Limited, will route funds through the Beijing-based AIIB, of which India is a significant founding member (Alpha).

This is AIIB’s first project with a data center. In the past, multilateral development banks have made investments in digital infrastructure. Due to the pandemic, such expenditures are becoming increasingly important with the advancement of 5G technology and other high-speed/supercomputing digital infrastructure.

The ultimate close of KDCF II is marked by AIIB’s commitment of $100 million through a parallel fund structure and $50 million through co-investments. The fund focuses on strategic investments in Asia Pacific’s fast-growing data center sector.