PGIM Closes $2B Global Fund
PGIM Real Estate has reached the $2 billion target of capital for its Global Data Center Fund. The fund focuses on data center development and investment across North America, Asia Pacific and Europe.
GDCF has a develop-fill-sell strategy targeting low latency hyperscale data centers. The fund had its first close in July 2023 and since then, it developed a diverse portfolio of properties in major global data center markets.
A team led by Morgan Laughlin, global head of data center investments at PGIM Real Estate, manages the fund.
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GDCF’s strategy involves the creation of joint ventures with leading operators in the sector while retaining an operator-independent approach. Each investment decision will include ESG considerations.
Last year, PGIM joined forces with Equinix Inc. for the development and operation of the first xScale data center in the U.S. The two-story facility rising in San Jose, Calif., is expected to provide more than 28 megawatts of power capacity once completed.
PGIM has earmarked more than $450 million for data center investment so far. The fund’s remaining capital is expected to be deployed within the next 18 months.
Global data center interest to grow
Global data center capacity is expected to expand 15 percent per year through 2027, according to a recent JLL outlook. The capacity in the Americas, led by the U.S., is expected to grow to approximately 30 gigawatts.
One of the recently formed data center development and investment platforms in the U.S. is Related Cos.’ Related Digital, launched in March. The platform will have a near-term $45 billion development pipeline specialized in digital infrastructure for artificial intelligence and cloud hyperscale tech companies.
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