US data centre investment reflects the value created by decarbonisation and digitalisation: Rest

Rest, one of Australia’s largest profit-to-member superannuation funds, says a recent significant deal involving a US-based data centre portfolio is a strong example of the global shift towards decarbonisation and digitalisation creating value for members.

Rest is the largest investor in renewable energy infrastructure manager Quinbrook’s Net Zero Power Fund (NZPF).

Last month, Quinbrook announced that funds affiliated with global private markets firm Blackstone acquired a significant minority stake in Rowan Digital Infrastructure.

Rowan is a developer of hyperscale data centre campuses, with a portfolio of more than 20 sites in the US. Rowan states that its projects are designed to have access to renewable power sources to help meet their renewable energy goals. Rest is an investor in Rowan through the NZPF and an associated co-investment vehicle.

Rest’s Head of Real Assets – Investments, Andrew Bambrook says Blackstone’s investment will support Rowan's future development pipeline and ongoing capacity expansion, and has delivered a strong initial return for Rest's members.

“Most of our members will not retire for many decades and we think deeply about the world they’ll retire into. We have a long-term objective to achieve a net zero carbon footprint for Rest by 2050,” says Mr Bambrook.¹

“We have identified decarbonisation and digitalisation as two of the major forces that will shape the global economy and society over the coming decades, while also creating valuable long-term investment returns for our more than 2 million members.

“Blackstone’s investment in Rowan reflects the growing recognition of the opportunities created by decarbonisation and digitalisation.

“This investment shows a strong return for members now, while also maintaining the opportunity to generate future returns for members over the longer-term.”

David Scaysbrook, Managing Partner, Quinbrook and Chairman, Rowan, says: "We’re focused on developing power and infrastructure solutions that solve hyperscale operators’ urgent need for more compute capacity at scale.

"We established Rowan as an early mover in gaining access to power, which is now driving global data centre development. This power focus leverages Quinbrook’s specialist expertise in power project development tailored to the needs of energy intensive customers.”

Rest committed US$650 million with Quinbrook in 2023 to invest in a range of assets expected to benefit from decarbonisation and digitalisation over the long term, such as solar and battery projects and renewable-energy supported data centres.

“Rest has established a track record of supporting next-generation renewable energy investments, particularly through its commitments with expert managers like Quinbrook and Octopus Investments Australia, and our direct ownership of Collgar Renewables,” adds Mr Bambrook.

“We believe our members will continue to benefit over the longer-term from our ongoing stake in Rowan, as well as Quinbrook’s strong return profile overall. We expect this investment will help our members grow their super while contributing to a more sustainable future.”

¹ This objective depends on a range of factors over time. You can read more about Rest’s progress in the Voluntary Sustainability and Responsible Investment Supplement and Voluntary Climate Change Supplement.