The story behind the largest data centre deal in history
How AirTrunk went from almost going broke to A$24 billion deal.
From almost going broke to the largest data centre deal in history. Here's the story of AirTrunk.
Earlier this week, I wrote about how Blackstone was nearing a deal to acquire AirTrunk and its data centres in a massive deal.
Well, the deal happened yesterday – for an incredible A$24 billion, making it the largest data centre deal of all time.
When nobody believed
Founder and CEO Robin Khuda long believed hyperscale data centres will see exponential growth, at a time when few even understood what data centres were.
- Left NextDC in 2013 and founded AirTrunk in 2016.
- In 2017, opened very first data centre in Sydney.
- Aiming for a float at up to A$10 billion in 2023.
- Deal this week placed it at A$24 billion.
In a previous interview with Sydney Morning Herald, Robin admitted that he even took money out of his superannuation (pension) fund to build the first data centre as AirTrunk ran out of money.
He eventually secured a A$400 million in offshore funding, delivered the data centre - and the rest, as they say, is history.
He retains about 5 per cent of Airtrunk after the deal.
AirTrunk data centres
Today, AirTrunk offers more than 700MW in capacity, essentially going from 0 to 12 data centres in eight years flat.
- Australia.
- Hong Kong.
- Japan.
- Malaysia^.
- Singapore.
If you look at the list, you will note how AirTrunk has a presence in all the key data centre markets in the Asia Pacific outside of China.
^In July, AirTrunk launched phase 1 of its 150MW data centre campus in Johor.
An incredible brand
Despite being a relatively unknown brand, AirTrunk surpassed overtaken better-known and far more well-resourced firms.
I suspect part of it has to do with Robin’s flair for raising funds, as well as the establishing of a stellar, recognised brand from nothing.
Of course, it’s not all sunshine and roses.
- Since my last post, a senior data centre engineer contacted me to highlight how the 400kW CDU used by AirTrunk's Johor data centre was considered small and an “off the shelf” part based on a site visit.
- Another data centre insider who worked with a former senior AirTrunk employee told me of heart-stopping issues and testing oversights.
But whatever issues there might be – and I’ll be surprised if any data centre operator can claim zero problems – there is no question in my mind that AirTrunk had pulled off something incredible.
Somehow, I don't think another AirTrunk-like story will happen again anytime soon.
