JLL To Acquire Data Center Service Provider Skae
JLL has announced plans to acquire a veteran industry service provider as the real estate giant leans into the data enter boom and sets up its own technical services division.
JLL announced Wednesday it would buy data center service provider Skae Power Solutions. Terms of the planned transaction weren't disclosed, but it is expected to close soon, according to a release.
The acquisition will make Skae a JLL company and place it in a technical services vertical in JLL's data center operations. The deal will enable JLL to assist clients with data center site selection, design, testing and commissioning, upgrades and operations management.
JLL is forming the technical services division as the demand for data centers has electrified in recent months, showing no sign of slowing down.
Globally, data center storage capacity is expected to increase from 10.1 zettabytes in 2023 to 21 zettabytes by 2027, JLL reported earlier this year. Consumer and business demand for storage will double faster in the next five years than in the last decade, the report says.
“As we help clients navigate evolving real estate needs driven by the rise in data center demand, we welcome the SKAE team and are excited to enhance our delivery of technical services for our clients’ critical assets,” JLL Work Dynamics CEO Neil Murray said in the release.
“With the continued growth of the global data center market, we’re seeing increased opportunity to deliver the specialized expertise required to manage and maintain these assets.”
As demand for data centers spikes, the need for power is also reaching a critical point. Bisnow previously reported that for some companies, that threat is dire, with the CEO of DigitalBridge warning that power for the company’s centers could go dark within two years.
Artificial intelligence is responsible for much of the vast proliferation of data and power demand in the industry. Global AI computing will use more electricity than some Western European nations within four years, according to a report published earlier this year in the research journal Joule.
“SKAE will be key in scaling JLL’s capacity to meet clients' needs and accelerating our abilities in data center management,” Americas CEO of Work Dynamics Sanjay Rishi said in the release.
Skae has served data centers since 1998 across multiple industries. Once the acquisition closes, Skae's 75 employees will join the Work Dynamics team at JLL.
Company co-founder and principal Peter Skae will report to Matt Landek, the Americas managing director for data centers at JLL.
