Goodman Group, Canada's CPPIB strike $9.3 billion deal for Europe data centres

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Dec 23 : ‌Australian data centre landlord Goodman Group said on Tuesday it had signed a A$14 billion ($9.32 billion) partnership agreement with Canada Pension Plan Investment Board to develop data centre projects in Europe.

Shares of Goodman Group rose as much as 7.7 per cent to A$31.48, hitting their highest level since November 6, and ‌were the top gainer on the benchmark S&P/ASX ‌200 index as of 2331 GMT.

The 50-50 venture, CPPIB's first data centre partnership in Europe, will involve an initial total capital commitment of A$3.9 billion, the companies said.

The partnership's portfolio comprises four projects in Frankfurt, Amsterdam and Paris, totaling 435 megawatts (MW) of primary power ‍and 282 MW of IT load - which is the power delivered to the servers and other computing equipment.

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"All projects provide speed to market with secured power connections, planning permits and substantially progressed site infrastructure works, ​enabling construction commencements by 30 ‌June 2026," the two firms said in their joint statement.

The transaction will be completed in phases and is expected ​to be closed by March 2026, the firms added.

Goodman already had plans ⁠in place at the start ‌of the year to expand its data centre business. It ​raised around A$4 billion in February to fund its growth plans for the same.

This is the second cross-border partnership ‍for the Sydney-based firm this year. In July, it said it would ⁠establish a $2.7 billion investment consortium with international pension funds and investors to develop ​data centre businesses ‌across Hong Kong.

($1 = 1.5022 Australian dollars)

Source: Reuters

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