Mubadala Investment Company, the Abu Dhabi sovereign investor, recently announced that it has invested in Yondr Group, a London-based hyperscale data center developer. The investment comes alongside Apollo through an existing investment from Apollo-managed funds.
The group provides scalable data center infrastructure for major blue-chip technology players. In addition, it has a contracted and reserved capacity of 878MW, with 58MW currently operational.
Cumulative data center demand to surge
Through its investment, Mubadala will support Yondr Group’s growth strategy, which it developed in line with the rapid demand growth for hyperscale data centers.
“With their additional support, we are well-positioned to accelerate our growth and continue delivering sustainable data center solutions to our clients worldwide, meeting the increasing demand for capacity,” stated Chester Reid, chief financial officer at Yondr Group.
In a statement, Mubadala said that global data center demand will likely grow at an 11 percent CAGR by 2032. This exponential growth will come amid advancements in artificial intelligence (AI), 5G technology, and the Internet of Things (IoT).
“We are witnessing strong growth in demand for hyperscale data centers in response to the rising data demands from AI adoption, 5G, and IoT, and Yondr will play a key part in providing solutions for some of the world’s fastest-growing corporations,” stated Mounir Barakat, senior executive director of digital infrastructure at Mubadala.
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Mubadala expands data center portfolio
The investment in London’s Yondr Group also builds on Mubadala’s rapidly growing portfolio of leading global data center assets under its digital infrastructure portfolio. In 2023, Mubadala invested in Aligned Data Centers, a leading U.S. data center company.
In addition, the $302 billion sovereign fund invested in Princeton Digital Group in 2022, a leading pan-Asian data center company that aims to expand world-class data center services to meet increasing demand across Asia.
Mubadala is also investing in major global fiber network providers such as the U.K.’s CityFibre and GlobalConnect.
In line with Mubadala’s responsible investing mandate, Yondr Group has committed to achieving net zero greenhouse gas emissions by 2030. This commitment also involves reducing emissions across all its data centers through energy-efficient technologies and renewable energy.
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