We are a Chinese fund that had passed on a couple LP opportunities in early 2017. We knew they were a good investment, but were not comfortable with GP in both deals. Assuming we find a GP we are comfortable with, are data centers still a strong investment opportunity in 2018 or has the market been oversaturated?
Answers
Data centers will continue to be a growth industry. Most surveys I have seen show growth to be in the 8 percent to 10 percent range over the next three years. The issue is really the optimization of the data centers with power and storage. New technology usage with data centers, including fuel cells and solar, I predict will be the forward-looking strategy of many data users so invest with this in mind. Good luck on the GP search. Remember, it's like a marriage. Given that you are in China, think of it as a long-distance marriage. In other words, you better really trust your partner and really have strong agreements in place.
