Centuria Capital Group (ASX: Group or “Centuria”), a premier Australasian real estate fund manager, is poised to acquire a 50% stake in Reset Data Pty Limited, an advanced data server provider, for up to $21 million. This strategic move will diversify Centuria’s revenue streams and unlock considerable growth opportunities.
By entering the Liquid Immersion Cooled Edge Data Centres market, Centuria is undertaking a dual acquisition that integrates both Property Company (PropCo) and Operating Company (OpCo) elements. This deal will not only expand Centuria’s real estate portfolio but also enhance its funds management platform with a scalable and forward-thinking business segment.
Centuria’s investment is strategically positioned to capitalize on the growth of data storage and Artificial Intelligence (AI), with the global cloud services market projected to surpass US$2.2 trillion by 2032 (17.1% CAGR), and Australian cloud services expected to exceed A$23.2 billion in 2024 (+19.3% from 2023).
ResetData integrates cutting-edge Liquid Immersion Cooling (LIC) technology into its data centers, resulting in a more space-efficient design compared to conventional facilities. This technology is more energy-efficient than air-cooled servers and helps to lower the carbon footprint. Furthermore, it enables ResetData to set up operations in existing office buildings rather than in distant warehouses, thus reducing connectivity latency for users.
Jason Huljich, Centuria Joint CEO, emphasized that the company aims to create the AI factories of the future with Liquid Immersion Cooling (LIC) technology. This technology supports the deployment of cloud-based solutions in smaller spaces, with fewer resources, and a markedly reduced carbon footprint. Notably, it fits within existing office layouts while generating significantly higher rents per square meter compared to traditional office users.
Huljich also highlighted the investment’s potential for value creation across Centuria’s direct and listed real estate portfolios. By investing in ResetData, Centuria plans to leverage vacancies in its office portfolio to set up a network of edge data centres. This will serve both tenants and nearby businesses, potentially enhancing rental income and property valuations for Centuria’s property funds. Additionally, it will offer tenants access to local cloud storage with improved ESG credentials.
ResetData partners with Dell, Nvidia, Submer, and Unicom Engineering to provide advanced Original Equipment Manufacturer (OEM) capabilities for liquid immersion cooling technology. A 2.4 square meter Liquid Immersion Cooling (LIC) pod can deliver 140kW of power, enabling up to 1.5MW of capacity within a compact 100 square meter office floorplate—vastly more efficient than the roughly 1,000 square meters required for a traditional 1.5MW data center. This LIC system not only significantly reduces space requirements but also offers substantial environmental benefits, including a reduced carbon footprint with zero water waste, compared to the 13,000 GL of water used annually by air-cooled systems, and achieves a 31% reduction in carbon costs.
John McBain, Centuria Joint CEO, noted that Centuria’s early investment in ResetData represents a strategic opportunity in a rapidly expanding sector, enhancing revenue growth and differentiating Centuria’s real estate platform. This aligns with Centuria’s acquisition strategy, which seeks real estate opportunities with strong growth potential and minimal competition, similar to their 2021 investment in Centuria Bass Credit.
Bass Salah and Marcel Zalloua, ResetData Joint CEOs, expressed excitement about partnering with a leading Australasian real estate fund manager. This partnership will enable the scaling of their next-generation data centre offering across Australia and New Zealand, starting with 818 Bourke Street in Melbourne—one of Australia’s pioneering Liquid Immersion AI inferencing and high-density data centres.
ResetData has secured a 10-year lease for up to 1.5MW at 818 Bourke Street, Docklands, managed by Centuria and owned by Centuria Office REIT (ASX: COF). The site will be developed into one of Australia’s pioneering AI inferencing and high-density LIC data centers, potentially boosting the property’s value by 10-15% after costs.
Centuria will fund its investment in ResetData using its current debt capacity. This investment is expected to have a neutral effect on earnings in FY25, with anticipated positive contributions to OEPS starting in FY26.
