Principal's Connectivity Bid with German Data Centre Complex
Capital market company Principal Asset Management has acquired a key data centre complex in the Rhine-Ruhr region of Germany.
Located in Düsseldorf, the 36,429 square metre complex is known as Connecta Park and is let to a number of tenants – including the likes of Digital Realty, Colt, Pluserver, Comtrance, Telia, Vodafone and Zayo.
The campus benefits from excellent fibre connectivity for the Nordics, Amsterdam, Berlin and Frankfurt and is home to the DE-CIX and ECIX (Megaport) internet exchanges.
Paul Lewis, Managing Director European Data Centres at Principal Asset Management, said: “The acquisition of this key data centre hub in Düsseldorf marks a strategic addition to Principal European Data Centre Fund I, further strengthening our presence in key European digital infrastructure markets.”
European fund to bolster hyperscaler connectivity
Connecta Park is the sixth asset to be acquired for Principal European Data Centre Fund I, which raised €297 million (US$339m) from 14 investors and is now closed to new investors.
Crucially, the fund is focused on manage-to-core data centre assets and has acquired five assets in Barcelona, the UK, Amsterdam, Dublin and Frankfurt.
Germany remains a powerful data centre market in Europe on account of its stable economy, advanced infrastructure and continued strong demand for data services. As a result, myriad companies are investing in key regions across the country as the data centre industry continues to evolve there.
Additionally, the country is experiencing rapid digital transformation and demand for AI and cloud technologies has meant it has adapted successfully to grow its market.
“North Rhine-Westphalia is experiencing increased demand from hyperscalers and this asset, offering access to a broad range of fibre networks and strong connectivity to the Nordics, Amsterdam, Berlin and Frankfurt, is well positioned to benefit from that trend,” Paul continues.
“With a high-quality tenant mix and significant technical capability, we believe this asset will continue to attract strong occupier interest as demand accelerates.”
Investing in a digital future
Earlier in the year, Principal Asset Management closed its dedicated data centre investment fund, the Principal Data Center Growth & Income Fund, raising US$3.64bn.
This fund is solely dedicated to the development of hyperscale data centre projects, whereby the firm will be creating a portfolio across the US.
As the third data centre-focused initiative by Principal Asset Management, it is expected to generate more than US$8bn of hyperscale development assets across the US. Also as a part of this fund, the company will be working in partnership with Stream Data Centers.
Data centre investments are continuing to run hot as the enterprise race for AI supremacy continues to surge worldwide. With numerous key industries relying on data centres to fuel essential services, investing in these facilities is mission-critical.
Likewise, data centres build a strong foundation for a more competitive economy across Europe and demand for these powerhouses is expected to more than triple in Europe by 2030, with nearly US$7tn in capital required for AI infrastructure alone.
On this subject, STACK EMEA’s Alison Gutman told Data Centre Magazine last week: “The numbers are eyewatering, but if Europe is to achieve these ambitions for growth, competitiveness and innovation and become AI leaders, we must have the right infrastructure in place; this is where data centre providers will play a transformational role.
“As hubs for the digital economy, data centres act as the catalysts for innovation and local economic growth, drawing entrepreneurs, financial institutions and supporting industries to the gravity of data, connectivity and processing power they deliver.”
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