The wealth manager to Facebook Inc founder Mark Zuckerberg and other technology entrepreneurs is starting a unit to invest in data centers to profit from growing demand for cloud-based services.
Iconiq Capital, run by Divesh Makan, registered a new subsidiary with the US Securities and Exchange Commission last month that is to put funds into technology-related real estate, according to documents filed with the agency.
Facebook and other technology giants have already spent billions of US dollars building data centers to provide cloud-based computer services to individual customers, Bloomberg Intelligence senior analyst Anand Srinivasan said.
That spending pales in comparison with the amount of funding that would be required as global corporations turn to the cloud to meet their computing needs.
“We are just scratching the surface on the large data center expansion trend,” Srinivasan said.
Iconiq, in starting a fund to invest in data centers, “has definitely picked up on a trend,” he said.
The demand for additional capacity has already fueled a surge in the market value of publicly traded tech companies and real-estate investment trusts (REITs) that own and operate data centers.
“The public REITs in the data-center space have been the best-performing sector of stocks in the past eight months,” said Jerald Kent, chairman of TierPoint, a closely held provider of cloud-computing services.
Iconiq opened in 2011, the year before Facebook held its US$16 billion initial public offering.
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