PGIM Real Estate has acquired a data centre project site in Germany for its closed-ended European value-add fund.

The manager has invested an unspecified amount on behalf of European Value Partners II to acquire the asset north of Munich. 

The property is located in Unterschleissheim, in the Greater Munich area, between the city of Munich and Munich airport, PGIM Real Estate said, adding that a power supply of 30MVA has been secured during the acquisition process.

Nabil Mabed, senior portfolio manager for European Value Partners, said: “Strong and surging demand for data centres, combined with low supply and limited development opportunities in urban areas translate into a very attractive investment opportunity for long-term investors.

“Data creation, and thus global demand for data centres is expected to grow by a yearly average of roughly 30% to more than 2,100 zettabytes in 2035, not least due to ongoing digitalisation efforts and recent developments in artificial intelligence.”

Mabed said modern data centre space with strong environmental, social, and governance characteristics in the colocation segment is in strong demand by both operators and data centre customers.

”With limited short-term development potential in Frankfurt, the German data centre market is shifting focus towards Berlin and Munich,” Mabed added.

To read the latest IPE Real Assets magazine click here.