Pure Data Centres Group and SEGRO plc announce second joint venture to develop 48mw fully fitted data centre in Paris
Pure Data Centres Group Limited (“Pure DC”) and SEGRO have today announced the formation of a second joint venture to develop a fully fitted data centre in Paris, targeting a pre-let with a global hyperscaler.
The formation of a second 50:50 joint venture with Pure DC, a premier European and Middle East data centre developer and operator with over a decade of experience delivering world-class digital infrastructure for the most sophisticated hyperscale users, represents yet another step forward in SEGRO’s data centre strategy of creating significant value upside and recurring income from its well-located pipeline of data centre opportunities.
“Large-scale powered sites in Europe’s leading metropolitan markets have become one of the scarcest and most strategically valuable resources in digital infrastructure. Demand for digital infrastructure across Europe is accelerating, but access to suitable sites with secured power and favourable planning positions in the FLAP-D markets remains the defining constraint. This makes the portfolio that SEGRO has assembled across Europe’s major metropolitan markets an exceptionally rare asset.
By combining this unique pipeline with Pure DC’s hyperscale design, delivery and operational expertise, backed by Oaktree and Brookfield, we can materially accelerate the delivery of mission-
critical digital infrastructure, while unlocking substantial value from some of Europe’s most strategically important powered assets.”
SEGRO and Pure DC are each expected to retain a 50 per cent. share in the joint venture through to completion of the development. The gross capital required is anticipated to be approximately £0.8 billion (including the contribution value of SEGRO’s powered land), which is projected to deliver an attractive yield on cost.
The development will be located in a key Paris Availability Zone. SEGRO will contribute land, including a pre-secured 75MVA of power capacity, at fair market value to the joint venture to enable delivery of a 48MW IT load data centre. In addition to land, SEGRO’s cash equity contribution is expected to be around £60 million over the total construction period.
"This second joint venture with Pure DC builds on the momentum across our European data centre platform and demonstrates how SEGRO can crystallise the significant value in its 3.0GVA power bank through a repeatable, capital-efficient model.
This project in Paris will be our first data centre development in Continental Europe and is another great example of how combining our carefully assembled, prime, power-secured sites with Pure DC’s technical expertise, can accelerate the delivery of highly profitable, fully fitted facilities. Our first project together at Premier Park is progressing well, with planning approval secured ahead of schedule and active discussions underway with two global hyperscalers.”