Rest has pointed to a recent US data centre transaction as evidence that long-term themes tied to decarbonisation and digitalisation are creating value for superannuation members.
The profit-to-member fund, which has more than 2 million members, said funds affiliated with global private markets firm Blackstone recently acquired a significant minority stake in Rowan Digital Infrastructure, a developer of hyperscale data centre campuses in the United States.
Rest is invested in Rowan through Quinbrook’s Net Zero Power Fund (NZPF) and an associated co-investment vehicle. The fund said Rowan has a portfolio of more than 20 US sites and designs projects with access to renewable power sources.
Rest, the largest investor in renewable energy infrastructure manager Quinbrook’s NZPF, said the transaction had delivered a strong initial return for members.
Rest head of real assets – investments Andrew Bambrook said Blackstone’s investment would support Rowan’s future development pipeline and capacity expansion.
“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,” said Bambrook.
“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.”
Quinbrook managing partner and Rowan chairman David Scaysbrook said demand for power and infrastructure was accelerating alongside growth in hyperscale computing capacity.
“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 assets expected to benefit from decarbonisation and digitalisation, including solar and battery projects and renewable energy-supported data centres.
Bambrook said the fund expected members would continue benefiting from its renewable energy investment strategy over the longer term.
“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,” he said.
“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.”
