Summary:
1. Goodman Group and CPP Investments have formed a $9.4 billion European data center partnership.
2. The joint venture will develop four data center projects in Frankfurt, Amsterdam, and Paris.
3. The European data center industry is projected to receive significant investment by 2030.
Article:
Goodman Group, a prominent Australian real estate investment company, has recently joined forces with the Canada Pension Plan Investment Board (CPP Investments) to establish a lucrative $9.4 billion European data center partnership. This collaboration involves an equal investment of $2.6 billion to kickstart the development of four cutting-edge data center projects located in key European cities such as Frankfurt, Amsterdam, and Paris. These state-of-the-art facilities are set to collectively provide a substantial 435 MW of primary power capacity and 282 MW of IT load capacity.
As a major player in the industrial property development sector, Goodman Group boasts a global portfolio valued at over $50 billion, encompassing logistics facilities, warehouses, and data centers. The company has been focusing on expanding its presence in the digital infrastructure realm, evident from its recent announcement of plans to raise $2.6 billion for global data center expansion. CPP Investments, a seasoned investment management firm, has been a long-term partner of Goodman Group since 2009, collaborating on various projects across Australia, Asia, the Americas, and now in Europe.
The partnership between Goodman Group and CPP Investments comes at a pivotal moment for Europe’s data center industry, which is predicted to attract a staggering $114 billion in investments by 2030. The European Data Centre Association’s (EUDCA) inaugural ‘State of European Data Centers’ report underscores the critical role of data centers in driving Europe’s digital economy and sovereignty. With over 10,000 data centers already operating on the continent, the growth is notably concentrated in the “FLAP-D” markets of Frankfurt, London, Amsterdam, Paris, and Dublin, as well as emerging hubs in the Nordics and southern Europe.
“The data center is the physical place that runs the cloud and the internet,” remarked Michael Winterson, Secretary General of the EUDCA, emphasizing the indispensable nature of data centers in fostering a thriving digital economy. Discussing the significance of the new partnership, Goodman Group CEO Greg Goodman expressed his enthusiasm for the rare opportunity presented by a portfolio of this magnitude and quality in Europe’s coveted FLAP markets. These strategically located data centers are in high demand to meet the escalating needs of cloud computing and AI adoption, offering unparalleled speed to market and delivery certainty.
