IMCO's Strategic Approach to Digitalization and Connectivity
The rapid digitalization of industries, driven by trends such as 5G connectivity, Cloud computing, artificial intelligence (“AI”) and the Internet of Things (“IoT”) is driving unprecedented demand for innovative technologies and robust infrastructure.
The IMCO World View theme of Disruptive Technology highlights these seismic shifts, underscoring the growing importance of digital infrastructure in enabling global connectivity and innovation.
IMCO's digital infrastructure strategy
Digital infrastructure is a key focus area within IMCO’s Infrastructure strategy. IMCO takes a foundational 'picks and shovels' approach to the sector, investing in critical assets like data centres, fiber networks and wireless towers that underpin digital and AI-driven advancements while effectively managing risk.
This strategy enables IMCO to deliver stable, inflation-protected returns while supporting global digitalization. By leveraging strategic partnerships and expanding its geographic reach to include North America, the UK and Europe, and Latin America, IMCO ensures its portfolio remains diversified, resilient and well-positioned to meet the demands of a rapidly evolving global economy.
Data Centers: The engine of the digital economy
Data centers are essential for processing and storing the vast amounts of data generated daily. IMCO invests in platforms that align with its Sustainable Investing strategy, two of which include Scala Data Centers in Latin America, and DataBank in the United States:
Scala Data Centers (Latin America)
In Latin America, where demand for digital storage is rising, Scala Data Centers is meeting the challenge by using Brazilian hydro power to reduce its environmental footprint. IMCO’s US$250 million investment helps fun expansion across Brazil, Chile, Mexico and Colombia, supporting the region's economic transformation. Image by Scala Data Centers.
DataBank (United States)
Since 2022, IMCO has invested in DataBank, the largest edge infrastructure operator in the U.S. DataBank operates over 65 data centers across 27 markets, offering mission-critical services to enterprises and technology providers. Recently, DataBank announced a US$2 billion equity raise, signaling the growing investor confidence in the company’s infrastructure and its development capabilities. Image by DataBank.
Fiber: The backbone of connectivity
Fiber networks form the backbone of global communication, enabling high-speed, low-latency data transmission. IMCO’s investment in platforms such as euNetworks, position IMCO to capture the growing demand for connectivity across Europe and beyond.
euNetworks (London, United Kingdom)
Operating in 17 countries, euNetworks provides high-bandwidth connectivity to data centers and Cloud services. IMCO’s investment in euNetworks since 2018 reflects confidence in its potential to meet the region’s growing data infrastructure needs. To address the increasing demand for fibre connectivity, euNetworks has introduced Super Highways, brand new high-capacity networks that leverage the latest technology to connect key cities and data centres. Image by euNetworks.
Towers: Expanding connectivity
Wireless tower infrastructure is essential to mobile connectivity. IMCO's investment in Cellnex Nordics provides strategic exposure to the next generation of wireless networks.
Cellnex (Nordics, Europe)
In 2023, IMCO, alongside its investment partner Stonepeak, invested in Cellnex, a Scandinavian operator of wireless telecommunications infrastructure and a division of Cellnex Telecom. With over 4,500 sites currently in operation across Sweden and Denmark, is it the leading independent tower operator serving mobile companies in the region. Image by Cellnex.
Broad exposure across IMCO's portfolio
Beyond its infrastructure investments, IMCO has exposure to digitalization across multiple asset classes, including public equities and global credit. This diversified approach ensures IMCO can capitalize on the sector’s growth in various ways, from foundational assets to innovative enterprises.
CoreWeave (United States)
In 2023, IMCO's Fundamental Equities strategy announced a US$150 million investment in CoreWeave, a specialized U.S. Cloud provider. CoreWeave’s advanced infrastructure and partnerships with industry leaders position it to meet growing demand for high-performance computing and innovative Cloud services.
Global Credit (North America and Europe)
IMCO also deploys capital towards digital infrastructure through its Global Credit asset class. This includes financing data centers and other mission critical infrastructure assets across the U.S. and. Our flexible capital solutions enable us to capture value in a wide range of investment opportunities.
As AI adoption accelerates, so will the demand for foundational infrastructure. Guided by its research reports, The Age of Artificial Intelligence and the IMCO World View, IMCO is well-positioned to meet this demand, driving global connectivity and innovation.
Learn more about IMCO Global Infrastructure.
About IMCO
The Investment Management Corporation of Ontario (IMCO) manages $86 billion of assets on behalf of our clients. Designed exclusively to drive better investment outcomes for Ontario's broader public sector, IMCO operates under an independent, not-for-profit, cost recovery structure. We provide leading investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. As one of Canada's largest institutional investors, we invest around the world and execute large transactions efficiently. Our scale gives clients access to a well-diversified global portfolio, including sought-after private and alternative asset classes. Follow us on LinkedIn and X@imcoinvest.