What’s the deal?
On 23 June, Mapletree Industrial Trust (SGX: ME8U), or MIT, announced the acquisition of the remaining 60% interest in 14 data centres located in the US.
These data centres are currently held by Mapletree Redwood Data Centre Trust (MRDCT).
MIT currently holds a 40% interest in MRDCT and will purchase the remaining 60% for US$210.9 million.
Upon completion of the acquisition, MIT will own 100% of these 14 data centres.
This acquisition highlights MIT’s confidence in the data centre segment and its belief in its resilience amid the economic downturn.
Even before COVID-19 struck the world, data centres had already been a growing trend as more companies required data storage space in a secure environment.
The pandemic has accelerated the demand for data centres as more people around the world tap on e-commerce and video-conferencing due to lockdowns and movement restriction orders.
Cloud computing revenue is slated to grow at a compound annual growth rate of 14% from 2018 to 2024