How KKR is Shaping the Future of Data Centers: 6 Key Takeaways

Dec 23, 2024

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KKR is strategically advancing its position in the digital infrastructure sector, with a keen focus on data centers as a vital component of its broader digitalization theme.

Here are six key takeaways from KKR's recent activities and strategic focus in the data center sector:

1. Broad Digitalization Theme

KKR views data centers as an integral part of a larger digitalization strategy, which also includes investments in fiber and towers. This holistic approach underscores their commitment to expanding digital infrastructure globally.

2. Global Data Infrastructure Platforms

KKR operates four independent data infrastructure platforms across key regions: CyrusOne in the U.S., Global Technical Realty in Europe, and Nxera/Singtel and Stt Gdc in Asia Pacific. This diversified portfolio positions KKR as a significant player in the global data center market.

3. Substantial Investment in Data Centers

To date, KKR has invested $5 billion in data center capital and is actively pursuing further investments. Their robust pipeline reflects a strong commitment to enhancing their data center footprint and meeting the growing demand for digital services.

4. Enterprise Value and Investment Potential

The total enterprise value of KKR's data centers, including current investments and the secured pipeline, exceeds $150 billion on a 100%-owned basis. This substantial valuation highlights the scale and potential of KKR's investments in digital infrastructure.

5. Extensive Financing Opportunities

KKR's credit vehicles have evaluated over $10 billion in data center financing opportunities in 2024. These opportunities span a wide range of investment profiles, including development, stabilized assets, and ABS/CMBS financing, demonstrating KKR's flexibility and strategic financial acumen.

6. Supporting Growth with CyrusOne

KKR recently arranged an $8 billion facility for CyrusOne to support its expansion, driven by the increasing demand for cloud and AI deployments. This significant investment underlines KKR's commitment to supporting its portfolio companies in achieving growth and innovation in the digital era.

These key takeaways highlight KKR's strategic vision and investment prowess in the digital infrastructure sector, positioning the firm as a leader in the rapidly evolving data center landscape in developed and emerging markets globally.

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How KKR is Shaping the Future of Data Centers: 6 Key Takeaways

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