Case Study
Hyperscale Joint Venture Program
GLOBAL DC OPERATOR
Summary
Working with a Global Colocation Data Centre operator to support their business case for the acceleration of a Hyperscale development program in conjunction with a Joint Venture partner.
Brief
The customer, an established Global Colocation Operator, sought to supplement its existing Capital development program and accelerate the delivery of a Hyperscale portfolio through the support of a Joint Venture (JV) partner. Starting with a skeleton management team, the group was empowered to develop the business case for the Global program, run a process to identify suitable JV partners, structure the interface with the existing business groups and launch the business with the Hyperscale operator community.
VIPA Digital were appointed to provide specialist resource familiar with the demands of the Hyperscale community, design, construction and operation of Wholesale DC facilities and commercial business modelling
Delivery
Working across an internal and external stakeholder group, the VIPA Digital team helped to assemble a commercial framework for the purpose of negotiation with the investment community as well as providing support during an exhaustive due diligence exercise for facilities in various stages of development. The exercise led to the identification of a suitable JV partner for an initial package of six facilities located in the EMEA region and setting a template for further investments in other global markets
Results
The project confirmed the trend for larger scale data centre facilities to underpin the expansion of Global Hyperscale operators and was able to demonstrate that a Joint Venture approach is a valid mechanism that could satisfy an investors commercial expectations whilst allowing an operator to accelerate its development program.
Following success in EMEA, the JV approach has been repeated in APAC, with an expectation that subsequent rounds of Joint Venture will be offered across mature and emerging markets as more Hyperscale opportunities emerge.