The European data center company Data4 was acquired by Brookfield Infrastructure. AXA IM Alts confirmed the sale this week, but the terms of the transaction were not disclosed. The news comes weeks after it was reported that Brookfield was in 'exclusive negotiations' to acquire a majority stake in Paris-based Data4 for an estimated $3.77bn. Data4, which was founded in 2006 by Colony Capital (now DigitalBridge), maintains approximately 30 data centers across France, Italy, Spain, Poland, and Luxembourg. Additionally, the company is developing a former military facility in Hanau, Germany, that could reach 2.1 million square feet and 180 megawatts.
In 2018, AXA Investment Managers bought the company for an undisclosed sum, with the Danish pension fund PFA purchasing a 20 percent stake in 2020. In 2021, the operator secured $737,500,000 in debt financing to finance its European expansion objectives. Together with Digital Realty, Brookfield Asset Management owns data center ventures in India (BAM Digital Realty) as well as Latin America (Ascenty), and it also owns DCI Data Centers in Australia/New Zealand. On its website, Brookfield states that it possesses approximately 50 data centers, more than 163,000 tower & rooftop sites, and approximately 14,000 miles of fiber.
The investment, according to AXA IM, represents Brookfield's "first significant foray" into the European data center market. AXA stated that Brookfield will utilize its ecosystem to provide world-class greenfield development and renewable energy capabilities in order to expand its business in Europe. With blue-chip hyperscale clients, Data4's long-term inflation-linked contracted marketing strategy generates stable and recurrent revenues that align well with Brookfield's investment strategy.
