Principal Real Estate has raised an initial €155m for Principal European Data Centre Fund, a fund with a €450m hard cap target.

The manager said the European data centre fund’s first close was backed by seven investors, including asset managers, pension funds, and insurance companies located in France, Germany, Spain, and Malaysia.

The closed-ended fund will focus on manage-to-core data centre assets in Europe.

Principal Real Estate, which entered the data centre market in 2007, closed its first closed-end data centre fund in the US in June last year, raising €471.4m.

The manager said it has so far committed over €1.75bn in data centre acquisitions and developments and owns more than €1.18bn in data centre real estate investment trusts.

Paul Lewis, director of European data centres at Principal Real Estate, said: “We have been evaluating the European data centre sector for the last 2-3 years, closely watching demand drivers such as advancements in technology and increased data consumption to determine the right time to launch a fund.

“With the first close being above our target equity raise, we are in a strong position to achieve our goals for the final close and to begin executing on our acquisition plans across Europe.”

To read the latest edition of the latest IPE Real Assets magazine click here.