Real estate investment trust (REIT) Segro has teamed up with Pure Data Centres (DC) to develop a £1bn (€1.19bn) pre-let data centre in the UK.
The European industrial and urban warehouse REIT plans to contribute a 10-acre West London industrial site and around £150m in cash equity to the 50-50 joint venture with Pure DC to develop the 56MW data centre in Park Royal.
The remaining construction costs are to be financed by non-recourse bank financing before the start of construction, Segro added.
Oaktree-backed Pure DC will provide 70MVA of secured power to support the 56MW IT load data centre, which the joint venture plans to develop as a 30,000sqm, three-storey facility on the edge of Segro Park Premier Road.
The asset is being developed with plans to lease it long-term to an unnamed global hyperscaler.
David Sleath, CEO of Segro, said: “This innovative joint venture with Pure DC allows us to develop our first fully-fitted data centre, alongside a highly experienced partner with an excellent track record of delivering world-class facilities to global hyperscalers.
“We expect this project to deliver an attractive risk-adjusted return and it will also help further strengthen Segro’s expertise in this area, enabling us to optimise and accelerate the significant value creation opportunity within our portfolio.”
Dame Dawn Childs, CEO of Pure DC, said: “Segro choosing to enter into a joint venture with Pure DC for its first fully fitted data centre development demonstrates our capability to create world-class digital infrastructure.
“Together we will develop a 56MW data centre in central London capable of handling next-generation cloud and AI workloads.”
Peter Kyle, UK member of parliament, secretary of state for the Department of Science, Innovation & Technology, said: “Private investment like this innovative partnership between Segro and Pure DC will help us ensure the UK has the digital infrastructure it needs to thrive, helping us harness the power of technology to grow the economy and raise living standards, the central missions in our plan for change.”
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