DC Advisory acts as financial advisor to Racks Central on its strategic investment from CAF II
Background
- Established in 2014, Racks Central (RC) is a Singapore-founded and -headquartered data center developer and operator
- RC designs, builds, and operates AI-ready data centres across Southeast Asia, engineered to support high-density compute environments and evolving enterprise and hyperscale requirements
- RC is actively developing liquid cooling facilities, enabling efficient thermal management for AI, GPU-intensive, and high-performance computing (HPC) workloads, while improving energy efficiency and operational resilience
- China-ASEAN Investment Cooperation Fund II (CAF II) is a Southeast Asia-focused private equity fund, with an initial capital commitment of US$1 bn. CAF II is sub-advised by ESR, a leading Asia-Pacific real asset owner and manager focused on logistics, real estate, and data centers
Process
- DC Advisory, was engaged by RC to act as financial advisor to provide financial and strategic advice
- DC Advisory worked with RC to engage a global group of strategic and financial investors, and identify the right partner to support RC’s growth ambitions and strengthen their position in the Southeast Asia market to meet a surging demand for AI-ready infrastructure in the region
- DC Advisory provided comprehensive sell-side M&A advice, including preparation of marketing materials, due diligence co-ordination, managing investor interactions, and optimizing financing strategy
Outcome
- The transaction completed in June 2026
- Under the terms of the transaction, CAF II will acquire a significant minority stake in RC
- The transaction supports RC’s expansion strategy and the development of next‑generation, energy‑efficient data centers across the Singapore–Johor–Batam corridor to meet AI and hyperscale demand
- This transaction highlights DC Advisory’s expertise advising Singapore headquartered companies on capital raising and their regional expansion. It also adds to DC Advisory's strong track record in the digital infrastructure and data center space
“DC Advisory provided exceptional advisory in helping Racks Central secure a strategic investment from ESR. Their deep sector expertise, commercial acumen, and skillful deal execution were instrumental in structuring and closing this major funding round. I want to particularly recognize Bernard Shaw for his outstanding dedication. Bernard went above and beyond, working tirelessly to navigate complex issues, manage multiple stakeholders, and ensure optimal deal terms for Racks Central. His proactive problem-solving and genuine commitment to our success made a real difference.”
“DC Advisory is extremely honored to have advised Racks Central on this milestone transaction. The Southeast Asia data center market is experiencing an unprecedented boom, driven by demand for generative AI workloads and cloud computing. We are confident that RC, in collaboration with CAF II as a strategic parter, is on track to build a strong and successful regional data center platform. We wish the team all the success in delivering on that ambition.”
- Infrastructure
- M&A Advisory
Disclaimer
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For important information regarding testimonials, please see our disclaimer.