- $1.25 million invested by DC Alliance
- More could be on the way, pending a general meeting and approvals
- Data centres remain hot property
Earlier this year, The Property Tribune reported on the rise of data centres and warehouses, with First Sentier describing the movements in its Global Property Securities 2021 Outlook as a ‘megatrend’.
Over the past few months, that trend seems to ring true. In March, NextDC announced a new data centre in Sydney on Sydney’s lower North Shore, and in July, Macquarie Telecom Group (ASX: MAQ) announced it started the development application process for the company’s largest-ever data centre in Sydney.
NextDC also announced it will be setting up shop in Horsley Park, purchasing land in July for $124 million.
Due to the nature of data centres and their requirements to remain running regardless of what happens to the power grid, weather, and more, construction quality is among the best. In July, the Multiplex built NextDC centre in Perth won the top gong at Master Builders WA Excellence in Construction Awards 2021.
DC Alliance (DCA) has made an investment worth $1.25 million in DXN Limited (ASX: DXN). The Singapore-based DC Alliance also has the option for a second tranche of shares also valued at $1.25 million; that is however subject to an upcoming DXN general meeting and approval from the Foreign Investment Review Board.
In addition to the placement, DXN and DCA are working towards an agreement to establish a strategic alliance to cross-sell the Australian data centre assets.
It is currently intended that the agreement will address the two companies working together to market and sell data centre services, colocation racks, and connectivity across two data centre locations: Perth and Sydney.
DXN and DCA plan to share sales and market insights to develop a joint customer value proposition for colocation sales and establish a common set of products between DXN and DCA, which will enhance the experience for current and potential clients.