Brookfield Secures A $3.8B Piece Of The European Data Center Market

The infrastructure division of Brookfield has entered the European data center market with the acquisition of a 31-center platform. The transaction, with a reported value of $3.8 billion, occurs as global capital focuses on development opportunities in the European data center market. According to CBRE's analysis, power shortages and land availability options will limit future supply, while hyperscalers and other consumers maintain pricing pressure. CBRE revealed that in the fourth quarter of 2022 in the main European sectors of Frankfurt, London, Amsterdam, Paris, and Dublin, new supply totaled 184 megawatts while take-up increased to 202 megawatts. In the transaction between Brookfield Infrastructure and AXA IM Alts, Data4 and its 31 data centers in six countries with 850 MW of secured power change hands. The 1,800,000 square foot portfolio is concentrated in Paris, Warsaw, Milan, Luxemburg, and Frankfurt. In 2018, it was acquired by AXA IM.

This investment represents Brookfield's first significant entrance into the burgeoning European data center market. Brookfield will contribute its expertise in greenfield development and renewable energy to the expansion of the business in Europe. Data4's long-term inflation-linked contracted business model with blue-chip hyperscale customers provides stable and recurring revenues that align well with Brookfield's investment strategy, as stated by Brookfield in its announcement of the deal. Brookfield is not the only company to recognize an opportunity. Reuters reported that Stockholm-based venture capital and private equity firm EQT is nearing the $8 billion acquisition of data center behemoth Global Switch, whose European centers incorporate London (957K SF), Amsterdam, Paris, Frankfurt, as well as Madrid.