Significant Investment in Data Infrastructure with New £1 Billion Data Centre in Park Royal, London
The venture aims to bolster London's digital capability and create numerous local job opportunities.
A new data centre, backed by a substantial investment of £1 billion, is set to be constructed at the Park Royal industrial estate in London, as announced.
This facility will deliver a power capacity of 56 megawatts (MW), specifically designed to accommodate next-generation cloud and artificial intelligence workloads and is projected to generate hundreds of jobs for the local community.
The development is a collaborative effort between UK warehouse investor Segro and Pure Data Centres Group (Pure DC), a company owned by the Canadian asset management firm Oaktree.
The centre is expected to be leased to a hyperscaler on a long-term agreement extending at least 15 years prior to its anticipated completion in 2029.
Segro is responsible for providing the land and managing the site clearance and remedial works, while Pure DC has secured 70 megavolt-amperes (MVA) of power to support the 56 MW IT load of the data centre.
The equity investment from both partners totals approximately £300 million, with the remainder of the project costs financed through bank loans.
The expected net yield from the investment is estimated to be between 9% and 10%.
The new facility will encompass 30,000 square meters across three stories and will be situated on a 10-acre plot at Segro Park Premier Road, an area acquired by Segro in 2009. This plot currently hosts an older warehouse that was recently vacated by the online retailer Matchesfashion, which entered administration earlier this year.
To address environmental concerns, the data centre will feature a closed-loop liquid cooling system designed to minimize its impact on the local water supply.
This will mark Segro's inaugural fully fitted data centre.
The facility is set to include necessary mechanical and electrical infrastructure alongside long lead time equipment like power distribution systems, cabling, and cooling systems.
However, it will not encompass IT equipment such as servers, which will be procured by the eventual customer.
Peter Kyle, Secretary of State for Science, Innovation & Technology, expressed support for the project, highlighting the importance of private investment in enhancing the UK's digital infrastructure.
He noted that such initiatives would aid in harnessing technology to foster economic growth and improve living standards, aligning with the government’s strategic objectives.
David Sleath, CEO of Segro, emphasized the pioneering nature of this joint venture, noting Pure DC's extensive experience in delivering facilities tailored for global hyperscalers.
Dame Dawn Childs, CEO of Pure DC, recognized Segro Park Premier Road as a prime location for data centres in London, underscoring the role it would play in advancing the UK's digitalization goals.
Construction of the data centre is set to commence following the acquisition of planning permissions, securing of lease commitments, and arrangement of financing.
This facility will deliver a power capacity of 56 megawatts (MW), specifically designed to accommodate next-generation cloud and artificial intelligence workloads and is projected to generate hundreds of jobs for the local community.
The development is a collaborative effort between UK warehouse investor Segro and Pure Data Centres Group (Pure DC), a company owned by the Canadian asset management firm Oaktree.
The centre is expected to be leased to a hyperscaler on a long-term agreement extending at least 15 years prior to its anticipated completion in 2029.
Segro is responsible for providing the land and managing the site clearance and remedial works, while Pure DC has secured 70 megavolt-amperes (MVA) of power to support the 56 MW IT load of the data centre.
The equity investment from both partners totals approximately £300 million, with the remainder of the project costs financed through bank loans.
The expected net yield from the investment is estimated to be between 9% and 10%.
The new facility will encompass 30,000 square meters across three stories and will be situated on a 10-acre plot at Segro Park Premier Road, an area acquired by Segro in 2009. This plot currently hosts an older warehouse that was recently vacated by the online retailer Matchesfashion, which entered administration earlier this year.
To address environmental concerns, the data centre will feature a closed-loop liquid cooling system designed to minimize its impact on the local water supply.
This will mark Segro's inaugural fully fitted data centre.
The facility is set to include necessary mechanical and electrical infrastructure alongside long lead time equipment like power distribution systems, cabling, and cooling systems.
However, it will not encompass IT equipment such as servers, which will be procured by the eventual customer.
Peter Kyle, Secretary of State for Science, Innovation & Technology, expressed support for the project, highlighting the importance of private investment in enhancing the UK's digital infrastructure.
He noted that such initiatives would aid in harnessing technology to foster economic growth and improve living standards, aligning with the government’s strategic objectives.
David Sleath, CEO of Segro, emphasized the pioneering nature of this joint venture, noting Pure DC's extensive experience in delivering facilities tailored for global hyperscalers.
Dame Dawn Childs, CEO of Pure DC, recognized Segro Park Premier Road as a prime location for data centres in London, underscoring the role it would play in advancing the UK's digitalization goals.
Construction of the data centre is set to commence following the acquisition of planning permissions, securing of lease commitments, and arrangement of financing.