Castleforge has joined forces with data centre operator Galaxy Data Centers to acquire Redhill Data Centre.
This partnership marks Castleforge’s entry into the data centre sector, combining its expertise in operational real estate investment with Galaxy Data Centers’ industry experience. The partners said this asset has a development value of more than £100m and that financing for the acquisition was provided by ICG Real Estate.
Located near London in the Foxboro Business Park, the Redhill Data Centre campus spans 11,800sqm across three buildings with 26MV of power. The data centre has 26 tenants, including Fortune 500 companies, ranging from financial services to AI.
Adam MacLeod, partner, Castleforge, said: “Data centres have been an attractive prospect that we have been monitoring for some time, but with advancements in AI and cloud computing accelerating demand, we have been eager to find the right opportunity in which to invest. The sector also fits within our speciality of operational real estate investment, and we see this as a logical extension to our existing capabilities.
Paul Leong, chief financial officer at Galaxy Data Centers, said: ”Redhill presents a rare opportunity to acquire a high-performing data centre in the prime London market, with strategic potential for expansion in both power and scale,
“We see tremendous growth potential to expand the facility’s power capacity and grow Redhill’s customer relationships. We are dedicated to enhancing the service and experience for all Redhill’s customers throughout this transition and beyond.”
Castleforge and Galaxy intend to “significantly expand” the capacity of the data centre to meet increasing demand for digital infrastructure driven by advancements in AI and hybrid cloud computing.
MacLeod added that Castleforge anticipates a significant ROI on the asset, with “substantial opportunities for expansion to meet surging demand for digital infrastructure in the coming years”.
To read the latest IPE Real Assets magazine click here.
