Goldman Sachs is betting on data centers with a US$500 million investment in Global Compute Infrastructure.
The Goldman Sachs Merchant Banking Division announced a partnership with former chief investment officer at Digital Realty, Scott Peterson, to form the newly established global data center infrastructure platform.
“Goldman Sachs is the perfect partner for us as we pursue global investment opportunities in the data infrastructure space,” according to Scott Peterson, the CEO of Global Compute.
Goldman Sachs’ investment primarily comes from its infrastructure fund, West Street Infrastructure Partners III, to enable up to US$1.5 billion in near-term investments in data centers deployed across North America, Europe, Asia Pacific and Latin America.
“Our combined global pedigrees and networks, together with GS MBD’s access to ample growth capital, will allow the Global Compute platform to not only serve the critical needs of our customers around the world, but also create and unlock value for our partners,” said Mr. Peterson.
Global Compute intends to grow through a combination of acquisitions and organic development to serve customers in geographies with strong secular tailwinds and potential for significant data infrastructure growth.
Leveraging the experience and track record of the management team, Global Compute will focus on acquiring and developing facilities which can meet the growing compute, storage, connectivity and colocation deployment needs of the world’s largest technology companies.
Aligned with this strategy, Global Compute signed an agreement to acquire ATM S.A., a leading data center and communications infrastructure business in Poland.
“Our initial investment in ATM S.A. is an ideal illustration of this collaboration. We are extremely enthusiastic about our partnership with Goldman Sachs enabling us to provide creative solutions for our global customers,” said Mr. Peterson.
Headquartered in Warsaw, ATM’s world class data center assets, communication infrastructure footprint, customer base and strong reputation in the market provide Global Compute with an attractive entry point into the rapidly growing Central and Eastern European data center market.
“There’s so much capital chasing deals, but based on the breadth of our track record, we believe we can find, evaluate and underwrite transactions as well as serve the critical needs of our customers,” Peterson said in an interview.
Global Compute intends to build on ATM’s success and market leadership by positioning the company to service the growing deployment needs of both new and existing customers in Poland and the broader CEE region.
“We see a tremendous opportunity in the data center space driven by increasing computing and storage demand and we believe the Global Compute team, backed by the global resources of Goldman Sachs, is uniquely positioned to deliver world class solutions to meet that demand,” said Leonard Seevers, the Managing Director at Goldman Sachs.
The founding Global Compute management team is led by Scott Peterson, the former CIO and co-founder of Digital Realty, with over 18 years of data center industry experience and more than 30 years in the real estate investment arena.
During his tenure at Digital Realty from 2004 to 2018, Mr. Peterson led all investment activity and was responsible for US$17 billion in total deal volume across both M&A and organic development.
Mr. Peterson is joined by a number of established executives in the data center space, including:
- Fellow Digital Realty co-founder, Christopher Kenney as COO
- Former Senior Digital Realty Executive in EMEA, Stephen Taylor as Head of Europe
“We think the industry has tremendous tailwinds amid continued penetration of cloud service providers,” Scott Lebovitz, Global co-Head and co-CIO of Goldman’s infrastructure investment group, said in an interview.
Following the Global Compute investment, Goldman Sachs’ third infrastructure fund valued at $2.5 billion is now more than 70% deployed.
The firm is preparing to raise a fourth fund, likely dubbed West Street Global Infrastructure Partners IV, early next year, according to people with knowledge of the matter.
This isn’t the first time Goldman Sachs has invested in data centers, as its special situations arm previously had a stake in AirTrunk, which it sold earlier this year to Macquarie Group for US$3 billion.
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