Data centres identified as attractive new asset class

Saturday, February 4th, 2023 07:20 | By
A data centre. Photo/Courtesy

Data centres and purpose-built student accommodation are high on the list for entrepreneurs who are increasingly turning to investment alternatives the latest Knight Frank Kenya Market Update report has revealed.

The report says data centres are gradually becoming popular with investors as the demand for internet and e-business continues to shift upwards.

Purpose-built student accommodation (PBSA) have also proven to be marginally above traditional real estate classes a trend that is widely observable worldwide. “Investors are always searching for the most profitable asset to invest in within their risk acceptance and that is why data centers and PBSA have turned out to be the best alternatives market,” said Mark Dunford, CEO of Knight Frank Kenya.

High demand

According to the report, the reason for the high demand of data centres is because data centres provide a cheaper and more efficient IT capability than inbuilt servers. They offer cloud services and allow organizations to focus on their core functions.

“This demand has seen companies such as IX Africa, a colocation data centre provider, partner with Helios Investment Partners, one of Africa’s leading private equities, where the latter will invest $50 million to help the former continue the development of its Nairobi campus.

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