The State of Michigan Retirement System is funding the development of a data centre by Investors.
The pension fund approved a $37m (鈧�34m) commitment to the project, in Dallas, Texas, according to a board meeting document.
Principal Real Estate Investors, which manages a separate account for the State of Michigan, is expected to complete the 145,000sqft Parkwood Data Center by November this year.
Brian Sandfort, a managing director for Principal, said: 鈥淲e are developing this property in a joint venture with Stream Data Centers.
鈥淭his is our third data centre project with them. The other two assets are located in Dallas and San Antonio.鈥�
Parkwood will be able to cater for five tenants but Sandfort says Principal was 鈥渉opeful of being able to lease the property to a single tenant鈥�.
He cited several factors that made the Legacy area of Dallas attractive for data centre investors. 鈥淭here are a lot of corporations located in the region,鈥� he said.
鈥淚t鈥檚 out of the flight patterns so companies don鈥檛 have to worry about a plane crash destroying all of their data. There is the right amount of power in the buildings to serve the company鈥檚 needs.鈥�
Michigan State also revealed that it was investing $25m in Asana Partners Fund I, a value-add fund focused on buying US retail assets.
The fund has attracted capital from a number of pension funds, including 鈥� 鈥� The New Mexico State Investment Council.
