MONTREAL — Montreal-based Northern Investment Partners has announced a partnership with M Capital Group, a merchant banking group with offices in New York, London and Dubai, with the intent to invest up to $160 million in equity to pursue a build, operate and acquisition strategy focused on data centres.
A media statement released by Northern Jan. 24 says the firm is aiming "to take advantage of one of the world’s fastest-growing real estate and technology opportunities." The objective, said Northern, is to provide facilities for AA and AAA tenants to house their IT infrastructure, "with a beachhead platform in one of the most naturally promising markets in the world, Canada."
According to Roger Karam, chairman of Northern: "Today the global data centre industry is worth over US$14.0 billion, with Canada poised to capture an increasing share as it becomes more and more attractive to foreign and domestic customers taking advantage of the ideal market conditions the country has to offer. The North American market accounts for almost half of the global market, which is expected to rise at a CAGR (compound annual growth rate) of 12.1 per cent between 2015 and 2018."
With increased requirements for the cloud industry, said Karam, the market is expected to double in size within the next five years.
"Canada is considered to be one of the most competitive markets to host wholesale data centres because of its cold climates, low cost of energy, stable and protective data protection and privacy laws and stable socio-political environment," he said.
Proximity to the United States is an advantage, said Karam, and provinces such as Quebec, which has among the lowest costs of electricity in the world, inexpensive real estate and affordable construction costs, are a good place to invest in data centres.