JLL enhances data center capabilities with strategic acquisition

Rhea-AI Summary

JLL (NYSE: JLL) has announced the acquisition of SKAE Power Solutions, a New York-based provider of data center technical and project management services. The acquisition aims to enhance JLL's data center capabilities, offering solutions across the complete data center lifecycle. The transaction, expected to close soon, will bring SKAE's 75 employees into JLL's Work Dynamics. The move aligns with JLL's strategy to address the growing demand for data centers, driven by AI and machine learning advancements. SKAE's expertise is expected to bolster JLL’s ability to manage data center site selection, design, testing, and operations management.

Positive

• Enhances JLL's data center capabilities across the full lifecycle.
• Adds significant technical depth to JLL’s existing offerings.
• Aligns with growing demand for data centers driven by AI and machine learning.
• SKAE's 75 employees, including experienced cofounders, will join JLL's Work Dynamics.
• Forms JLL's Technical Services division within the Data Center vertical.
• Expected growth in data center storage capacity from 10.1 ZB in 2023 to 21.0 ZB in 2027.

Negative

• Transaction subject to customary closing conditions, which may delay finalization.
• Integration risks related to merging SKAE's team and operations with JLL's.

SKAE Power Solutions strengthens JLL's data center technical and project management service

CHICAGO, May 15, 2024 /PRNewswire/ -- As data center demand continues to surge, JLL (NYSE: JLL) today announced it has reached an agreement to acquire SKAE Power Solutions (SKAE), a New York-based provider of data center technical and project management services. This acquisition of SKAE enables JLL to provide solutions across the full data center lifecycle and adds significant technical depth to its existing offerings. The transaction is expected to close shortly, subject to customary closing conditions.

"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," said Neil Murray, CEO of Work Dynamics, JLL. "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. This acquisition immediately enhances our ability to expertly support our clients' data center solutions now, and into the future."

JLL's recent Global Data Center Outlook revealed how AI and machine learning are prompting a fundamental shift in data center design, site selection and investment approach. Over the next five years, consumers and businesses will generate twice as much data as all the data created over the past 10 years, prompting data center storage capacity to grow from 10.1 zettabytes (ZB) in 2023 to an expected 21.0 ZB in 2027. SKAE's expertise in planning and engineering, installation of critical infrastructure, testing, facilities maintenance, and operations will enhance JLL's ability to support clients with crucial data center site selection, design, testing and commissioning, upgrades, and operations management.

Since 1998, SKAE cofounders Peter Skae and John McPartland and their team have delivered technical data center needs across a variety of industries including finance, healthcare, education, and government. SKAE's 75 employees will join JLL Work Dynamics, led by Peter Skae who will report to Matt Landek, Americas Managing Director for Data Centers. The acquisition will form JLL's Technical Services division within the Data Center vertical and operate as SKAE, a JLL company.

"SKAE will be key in scaling JLL's capacity to meet clients' needs and accelerating our abilities in data center management," said Sanjay Rishi, Americas CEO of Work Dynamics, JLL. "Combining SKAE's regional expertise and talent with JLL's global, comprehensive suite of solutions will both complement and expand our technical services capabilities."

"We were immediately drawn to the values upheld throughout JLL's global organization, and how closely they reflect our principles at SKAE – particularly JLL's safety-driven culture, and focus on people, procedures, and policies," said Peter Skae, Principal, SKAE. "We are looking forward to joining the organization to bring our data center solutions expertise to JLL's clients."

Layer 7 Capital acted as a financial advisor to SKAE Power Solutions in this transaction.

About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 108,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

Contact: Jesse Tron
Phone: +1 914 424 0299
Email: jesse.tron@jll.com

 

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SOURCE JLL-IR

FAQ

What did JLL announce on May 15, 2024?

JLL announced the acquisition of SKAE Power Solutions to boost its data center capabilities.

How will SKAE Power Solutions enhance JLL's offerings?

SKAE will add significant technical depth and expertise across the data center lifecycle.

What is the expected growth in data center storage capacity by 2027?

Data center storage capacity is expected to grow from 10.1 ZB in 2023 to 21.0 ZB in 2027.

Who will lead the new Technical Services division within JLL?

The division will be led by Peter Skae, reporting to Matt Landek, Americas Managing Director for Data Centers.

What industries does SKAE Power Solutions serve?

SKAE serves finance, healthcare, education, and government sectors.

What are the potential risks of JLL's acquisition of SKAE?

The transaction is subject to customary closing conditions and integration risks.