SINGAPORE Technologies Telemedia is buying a major stake in British data centre provider Virtus Data Centres.
ST Telemedia, through its wholly owned unit, STT GDC, will make the investment via a joint venture with the British firm's owner Brockton Capital.
The amount of the investment was not disclosed.
The money will be used to fund Virtus' continued growth in Britain, ST Telemedia said in a statement yesterday.
Executive director Sio Tat Hiang said he was pleased with ST Telemedia's momentum in data centre expansion activities.
"ST Telemedia's investment into Virtus is at a fitting time for Europe's data centre market, particularly in the top-tier, carrier-neutral segment, where we're seeing attractive growth opportunities," he said.
ST Telemedia is an investor in communications, media and technology businesses and has a presence globally through its portfolio companies.
For instance, Level 3 Communications owns and operates more than 350 data centre facilities throughout North America, Latin America and Europe.
Another portfolio company, GDS Services, operates 17 data centres across China.
Virtus was recently called "one of the most innovative data centre providers around" by 451 Research Group, and short-listed for the Data Centre Industry Leader Award at the Datacloud Awards this year, ST Telemedia said.
Virtus chief executive Neil Cresswell said: "The addition of ST Telemedia to our existing relationship with Brockton Capital will support our growth plans to expand our data centre footprint and services in key markets.
"Its experience and reach, in particular its growing Asian portfolio with the likes of GDS in China and its data centre platform in Singapore, will hugely benefit our customers."
Demand for data centres is growing in Britain.
According to a Tariff Consultancy report, Britain has more than 650,000 sq m of data centre floor space, with an increase in storage capacity of about 22 per cent by 2019.
Britain, with 224 facilities, is also the biggest hub of data centres in Europe. London, which hosts 40 per cent of the world's top 250 companies' European headquarters, accounts for 69 of them.
Britain is the lowest-risk European country in which to locate a data centre, according to a Cushman & Wakefield report, based on considerations such as energy costs, corporate tax rates, labour costs and political stability.