AustralianSuper bets $2.5b on AI data play

The news: AustralianSuper will invest $2.5 billion to buy a minority stake in US firm Vantage Data Centers, betting on the rapid growth of AI and cloud computing. Vantage is controlled by NYSE-listed DigitalBridge.

The numbers: AustralianSuper's investment will bolster the fund's $40 billion infrastructure portfolio, which falls within the $300 billion in retirement savings it manages for 3.2 million members. Vantage controlling owner DataBridge manages USD70 million ($109.8 million) of digital infrastructure assets on behalf of its limited partners and shareholders. Vantage is committed to net zero carbon emissions by 2030.

The context: The growing adoption and interest in AI is driving up the need for supportive digital infrastructure like data centres. The success of first-mover companies in the space like OpenAI (ChatGPT), NVidia, Google and Microsoft has been significantly borne-out in valuations, and investors are looking to other potential beneficiaries in the space.