Singapore's TPG-backed AirTrunk raises $333m
TPG Capital and Goldman Sachs have joined a S$450 million ($332.6 million) investment in AirTrunk, a Singapore-based provider of data center services.
The transaction included an equity commitment from TPG, Goldman Sachs, and AirTrunk’s founder and CEO Robin Khuda, along with debt financing from Deutsche Bank, Natixis, and Goldman Sachs. According to a statement, TPG participated via its dedicated credit and special situations platform TSSP.
AirTrunk will use the proceeds to construct its first data center in Singapore, a carrier-neutral facility planned to have over 60 megawatts of IT load designed for hyperscale cloud data services, content providers, and enterprise customers. The site will be serviced by multiple fiber paths and a dedicated power substation, and is expected to be operational by the middle of next year.
Khuda founded AirTrunk in 2014. He previously spent three years with Australian data center provider NextDC and helped establish Australia’s first data center real estate investment trust. TPG and Goldman Sachs have played a significant role in the company’s development, leading a A$400 million ($306 million) debt and equity round in 2017 and returning for an A$850 million round last year.
So far the company has mainly operated in Australia, with more than 170MW of capacity at its Sydney and Melbourne data centers, but it has been developing its Asia expansion strategy for years. Speaking to the Straits Times, Khuda said AirTrunk plans to raise billions of dollars in capital in the next two years to support the construction of facilities in Hong Kong and Tokyo.
Data infrastructure services in Asia are seen as a compelling trend for investors thanks to the continuing growth of industries such as artificial intelligence, virtual and augmented reality, and the internet of things (IoT).
Recent investments in the segment include Bain Capital acquiring a majority stake in the data center construction and maintenance division of China’s NetScience Technology. Warburg Pincus is also active in the sector, having launched a China-focused joint venture with 21Vianet and backed emerging markets-focused data center and digital media services platform Princeton Growth Ventures.
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