The Appeal of Global Impact Funds

The global data centre market continues to grow unabated. A significant proportion of this growth comes from ‘hyperscale data centres’, which are being built by large technology groups such as Microsoft, Google and Amazon. The increasing use of artificial intelligence and machine learning is significantly changing the requirements for data centres. These technologies require more computing power and higher rack densities, which necessitates new designs and increases location requirements. In addition, the demand for “colocation”, i.e. capacity close to users, is increasing to ensure faster loading times.

Sustainability and Energy Efficiency

The sustainability and energy consumption of data centres is an increasingly important aspect, as energy costs and environmental impact are rising steeply. There is a need to improve energy efficiency, and there are several approaches to this:

• Cooling is the most important consumption factor. Free cooling or liquid cooling are common efficiency measures.
• Eliminating losses from sub-optimal power distribution significantly reduces energy consumption.
• Energy for the infrastructure increases energy consumption – building automation helps to reduce this consumption.
• Many data centre operators rely on renewable energies to reduce their carbon footprint.

In order to build “green data centres” in the future, a holistic approach is required. This enables optimised energy efficiency and therefore both economic and ecological benefits.

Data Centers in the Carnot Capital Portfolio

Schneider Electric has developed a platform that enables the analysis, monitoring and automation of data centres. Data centres are an important part of the core business, accounting for almost 20% of sales. At ABB and Hubbell, this share is around 10% and also makes a substantial contribution to sales growth. Instalco, a Scandinavian installation company, and Energiekontor, which develops wind and solar projects for the operation of data centres, are also benefiting. Finally, Carel, a new portfolio item, develops advanced cooling systems tailored to the requirements of data centres.

In the world of financial investments, investors are often faced with the question of whether it is better to invest in individual shares or funds. Andres Gujan explains the role that factors such as diversification, risk/return ratio and personal preferences play in this decision.

Diversification and Risk: Individual shares are targeted investments in individual companies, which enables potentially higher returns. However, this is also associated with a higher risk, as the success of an individual share depends heavily on company-specific and market-related factors. Funds, on the other hand, spread the risk across a large number of shares or asset classes, which reduces the risk of loss. At Carnot Capital, we always keep an eye on these risk factors and periodically compare the portfolio with the ESG and impact values.

Risk-Return Profile: Individual shares can fluctuate strongly in the short term, but offer the opportunity for considerable gains in the long term. Funds offer a more stable performance over longer periods and are particularly suitable for investors who want to avoid large fluctuations in value.

Time and Costs: The selection and management of individual shares often required more time, knowledge and research. Professional fund managers, like us at Carnot Capital, deal with the portfolio on a daily basis, which reduces the effort for the investor.

Personal Preferences: The decision between individual shares and funds also depends on personal goals, risk tolerance and ethical considerations. Investors should design their investment strategy according to their individual situation and financial goals and draw on the expertise of specialised fund managers, especially for thematic investments.

“Overall, a balanced mix of individual shares and, for example, impact funds can be a sensible strategy to benefit from the advantages of both forms of investment, i.e. to achieve a good risk/return profile and make a sustainable contribution in the area of energy and resource efficiency. Andres Gujan, Founder Carnot Capital & Portfolio Manager