Highlights:
•The Keppel Data Centre Fund II (KDCF II), a private equity company, will be used by AIIB to route capital. Alpha Investment Partners Limited is in charge of its management (Alpha).
•It will be AIIB’s first data centre construction project.
•The ultimate conclusion of KDCF II is the AIIB’s commitment of USD100 million through a parallel fund structure and USD50 million through co-investments.
•By focusing on Asia Pacific, the fund focuses on strategic investments in the fast-growing data centre market.
What is in the News?
The Asian Infrastructure Investment Bank (AIIB) is planning a $150 million investment in the creation of data centres that will primarily serve emerging Asia.
The Keppel Data Centre Fund II (KDCF II), a private equity company, will be used by AIIB to route capital Alpha Investment Partners Limited is in charge of its management (Alpha). It will be AIIB’s first data centre construction project. The ultimate conclusion of KDCF II is the AIIB’s commitment of USD100 million through a parallel fund structure and USD50 million through co-investments. By focusing on Asia Pacific, the fund focuses on strategic investments in the fast-growing data centre market.
What is the project’s purpose?
In the past, multilateral development banks have made investments in digital infrastructure. With the advancement of 5G technology and other high-speed or supercomputing digital infrastructure, such expenditures are becoming increasingly important in the face of the covid-19 pandemic.
The project’s importance
A number of low- and middle-income countries lack their own data infrastructure at home. There is also a significant disparity in data centre penetration between countries with varying levels of affluence. As a result, it highlights flaws in the investment climate, with large global investors shunning emerging and frontier economies. As a result, the introduction of this project is significant since it will help developing data centres serving rising Asia raise funding.
Asian Infrastructure Investment Bank (AIIB)
The Asian Infrastructure Investment Bank (AIIB) is a multinational development bank founded with the goal of enhancing Asia’s economic and social outcomes. There are now 105 members, including 16 potential members. The AIIB was founded on January 16, 2016.
